Mutual funds have emerged as the most accessible investment vehicle for women as they offer diversification, professional management and flexibility like Systematic Investment Plans (SIPs) and mutual funds. However, the key to success lies not only in investing, but in building the right portfolio at the right stage of life.
In honor of Women 2026, ETMutualFunds reached out to women financial experts to learn how female investors can build a strong mutual fund portfolio, stay disciplined during volatile markets, and avoid common investment mistakes.
Building mutual fund portfolios at different stages of life
A woman’s financial priorities often evolve with life stages—starting with early career savings, moving to family responsibilities, and finally focusing on retirement planning. In the early stages of a career, women usually have a longer investment horizon and fewer financial responsibilities. Then responsibilities grow in the middle of a career—like buying a house, raising children, or planning for education expenses. Closer to retirement, the focus gradually shifts toward capital preservation and steady income generation.
Annette Fernandes, Fund Manager-Equity, Canara Rubico Asset Management shared with ETMutualFunds that a unique mix of different asset classes can be considered as it helps to maintain a balance between long-term investment plans and immediate needs. However, investors should assess their risk appetite, investment objective and objective before investing.
Priti Rathi Gupta, founder of LXME shared with ETMutualFunds that investing is not complicated, just apply simple rules of thumb to guide your mutual fund investments which should be 100-age.
Gupta said that if you are in your 20s or 30s, time is the biggest asset you have, so it is wise to invest 70-80% in equity and the rest in debt. As you grow into your 30s and 40s, more responsibility is added to your plate. So, it is better to invest 60-70% in equity and 30-40% in debt. Finally, when you reach your 50s or later, the priority is to save capital. So, it is wise to invest 30-40% in equity and 60-70% in debt and in every decade of your life, it is wise to maintain a liquid fund that is sufficient for at least 8 months of expenses to act as a safety net in case of problems. SIPs are your best friend in every decade of your life, as they eliminate the need to time the market, are the most disciplined way to invest, and let the power of compounding work its magic, said Gupta.
Maintaining order in times of market volatility
Market volatility is inevitable, but regular investing can help investors stay on track with their financial goals. SIPs encourage regular investment regardless of market conditions. By investing a fixed amount at regular intervals, investors benefit from rupee cost averaging – buying more units when prices are low and fewer when prices are high. This helps reduce the impact of short-term market volatility
Gupta said the best way to combat the ups and downs of the markets is also the simplest: Don’t close your SIP! Market fluctuations, or declines in the markets, are the best times to invest if you can effectively accumulate more assets at lower prices.
She added that before you start investing, make sure you set a goal for yourself so that short-term market fluctuations don’t affect your mindset. While it is important to keep a tab on them, too much tracking of your investments is also likely to cause panic, especially in uncertain times so the key is to be patient and follow the practice of periodic portfolio reviews and rebalancing. If you’re still not sure, just think about the reason why you want to start investing in the first place! Finally, consult a trusted advisor before making any impulsive decisions.
To this, Fernandes said that investors usually lose sight of the fact that investing in periods of market volatility is for the long term. However, it is important to maintain discipline at such times.
Investment planning for long-term goals
For many women, financial goals include planning for retirement, building a safety net, supporting family needs, and achieving financial independence. Retirement planning is especially important because women often have longer life expectancies and may take career breaks due to family responsibilities. This makes long-term financial planning even more important.
Fernandes said it is essential to create a Systematic Investment Plan (SIP) target post for such long-term goals and follow them in a disciplined manner.
Gupta said that the earlier you start investing, the longer the power of compounding will work its magic, and even a small investment today has the potential to garner you huge sums in the future so invest wisely and diversify your investments to get the right combination of safety and growth.
This is where smart investment strategies come into play, helping you achieve your plans despite the erratic nature of the markets, consistency is key; Therefore, SIPs should be seen as commitments, and focus should be given to long-term goals like retirement and financial freedom and with discipline, smart investment strategies, and patience, the power of compounding will multiply your initial investment, resulting in safety and growth, Gupta added.
Common investment mistakes women should avoid
While more women are entering the investment ecosystem, experts say some common mistakes can prevent them from building long-term wealth.
Gupta said the first challenge is waiting for the ‘right time’ to start investing and delaying the decision, which ultimately reduces the strength of the combination. Second, many investors tend to be either too diversified or too concentrated in one asset, often losing control of their financial decisions. Third, neglecting insurance, inadequate health and life coverage can derail a solid investment plan.
She added that the fourth, aimless investment; Money is automatically withdrawn at the first sign of trouble. Finally, neglecting periodic portfolio reviews and rebalancing can quietly increase risk and divert your investment from your desired goals. Staying invested is important, but so is awareness.
Fernández said that one should avoid focusing only on returns, as it always comes at a high risk. Balancing risk and return is key in investing.
One should always consider their risk appetite, investment horizon and objectives before making any investment decision.
(Disclaimer: The suggestions, recommendations, views and opinions given by the experts are their own. They do not represent the views of The Economic Times)
If you have mutual fund queries, message ET Mutual Fund on Facebook/Twitter. We will answer it by our panel of experts. Share your questions with us ETMFqueries@timesinternet.in Along with your age, risk profile, and Twitter handle
As a credible and reliable news source
