5 Best High-Return Investments For Women Entrepreneurs, As per Financial Expert: Money Matters

As a woman entrepreneur, making smart investments is important to building long-term financial security. Here are some of the best high-return investment options that every woman entrepreneur should opt for. 
  • Alice Mary
  • Editorial
  • Updated - 2024-12-04, 02:00 IST
High-Return Investments For Women Entrepreneurs

As a woman entrepreneur, managing your business’s growth while securing personal financial stability can be a great work of balance. But one of the most effective ways to build long-term wealth is through smart investments. However, with so many options available, where should you invest your hard-earned money for the highest returns? According to the McKinsey Global Institute, empowering women entrepreneurs can help increase up to 18% of India’s GDP, which can account for $770 billion by 2025. Meanwhile, economic independence and wealth creation remain vital to an employer's sustainability and expansion. To know about this in detail we consulted V.L.A Ambala, Research Analyst (SEBI Registered), Stock Market Today to share some high-return investment options for women entrepreneurs to help you make informed decisions:

5 Best High-Return Investments For Women Entrepreneurs

1. Mutual Funds

Mutual Funds

For women entrepreneurs looking for a simple investment option, mutual funds are an ideal choice. These funds pool money from various investors to invest in a diversified portfolio of stocks, bonds, or other assets. V.L.A Ambala says that, “Mutual fund is an excellent investment option for women as it offers flexibility, professional management, and the potential for higher returns compared to traditional fixed-income investments. For instance, equity funds have delivered around 12-15% annual returns over the past few years, making them a good option for those with a moderate risk appetite.”

2. Real Estate Investment

Real Estate Investment

Real estate remains one of the top investment options for high returns, especially for long-term growth. As a woman entrepreneur, you can invest in residential properties, commercial spaces, or even rental properties. Real estate not only appreciates over time but also generates passive income through rent. Our expert V.L.A Ambala suggests, “Investing in commercial real estate or co-working spaces can offer double returns and profits. Additionally, to make this investment more affordable for women, states like Maharashtra and Delhi will offer 4% less stamp duty across India for women buying properties. Cities such as Bengaluru, Delhi, Pune, Hyderabad, and Mumbai have become major investment spots due to their thriving real estate ecosystem.”

3. Peer-to-Peer (P2P) Lending

Peer-to-peer lending is an alternative investment option where individuals lend money to borrowers through online platforms. In return, you earn interest on your loans, which can provide higher returns than traditional savings accounts or bonds. Our expert further states that, “Through these platforms, borrowers and lenders can connect directly without any third party. Reports suggest that 60% of lenders have earned a 20% return through P2P platforms, offering them good investment options with returns. P2P platforms help generate income for women entrepreneurs and support small businesses.”

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4. Investing In Startups

As a woman entrepreneur, one of the best investment options you can consider is investing in your own business or other startups. Building your business or helping others launch new ventures offers the potential for substantial returns, especially if your venture scales successfully.

Startups

Many women entrepreneurs are opting for angel investing. V.L.A Ambala further explains that, “Data reveals that during FY 2024, women-led startups secured $523 million through 75 deals compared to $289 million secured through 62 deals in FY2023. This growth has also increased by 81% YoY, making it an attractive option for investing in startups.”

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5. Thematic Investment And Small-cap Stocks

Thematic Investment

According to our expert, “Those with a high-risk appetite may consider small-cap stocks and thematic investment portfolios. These instruments are popular for wealth creation. However, the risks associated with thematic and small-cap stocks are quite high. Women professionals could benefit more by investing in quality stocks and sectors with decent long-term performance.”

By educating yourself, diversifying your investments, and planning for the future, women entrepreneurs can make the most of your money and secure a good financial future.

Note: Make sure to consult a financial advisor before making any investment.


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Image credit: Freepik


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