Weddings in India are a significant event for the bride, groom and families involved. The week-long functions require a good amount of corpus. As there is a list of other financial commitments and necessities, planning a satisfactory wedding may demand more than accumulating funds a year before the wedding.
One great way to build a robust wedding corpus for yourself or a family member's wedding is by investing in a mutual fund. It is better to start as early as possible for wedding investment.
The flexibility offered by mutual funds is a plus point. Several companies and institutions offer wedding-special mutual funds where people can save for their future weddings. Other than this, the SIPs for weddings are also a great choice. One of the best parts of a mutual fund investment is that you can start with as minimum an amount as INR 500 or 1,000. There are several mutual fund options for wedding investments, like-
This is one of the best mutual fund choices for people who have five years or more to their wedding. The longer the investment tenure is, the higher the returns could be.
If you are someone who only has a few years left for D-day, you can look for debt mutual funds investment. This is open for both long and short-term investments.
Since gold jewellery and ornaments are an integral part of every Indian wedding, you could also start a systematic investment in Gold ETFs to leverage the rise in the price of gold. This kitty could be utilised to make gold jewellery as and when you need to.
When planning to invest in Mutual Funds for your wedding - Remember this:
There are a lot of institutions operating mutual funds. It helps if you research well before choosing the right one, because different mutual funds have different stock compositions, return potential and may be subject to different market risks.
Before investing, it is vital to assess the time to your wedding. You can then choose debt or equity mutual funds accordingly.
The expense ratio is the cost of managing the fund. Choose a mutual fund that has a lower expense ratio.
This is one benefit you can look for in some mutual fund investment plans. In case of financial urgency, the loan amount can come in very handy.
The portfolio of a mutual fund indicates its quality of investment, which needs to be aligned to your investment objectives. So, you must check it before investing.
Mutual funds act as a helping hand when planning for Indian weddings. No matter how many years are left, you can start saving today. It is vital to analyse your other financial needs before promising a portion of your income to investment. So, research and begin investing sooner for a well-planned wedding event for yourself or your family.
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