For big expenses like marriage, it is wise to invest through SIP in time. With the right fund selection, fixed goals and long term SIP, a strong fund can be created for the dream of marriage without any financial pressure.

Mutual Funds: In today’s time, marriage has become not just a family event but also a big financial commitment. Lakhs of rupees are spent on venue, catering, clothes, jewellery, decoration and guest arrangements. If planning is not done at the right time, financial pressure may increase at the time of marriage. For this reason, people now plan investments in advance for big goals like marriage. Mutual Funds and especially SIP (Systematic Investment Plan) have emerged as an effective option in this matter.

Why mutual funds and SIP are the right option for marriage?

Mutual funds are one of the most popular investment options among investors today. Its biggest feature is that you can start investing in it even with a small amount and make a big fund with time. A fixed amount is invested every month through SIP, which does not impose any lump sum burden. SIP is also beneficial for goals like marriage because it maintains discipline and the benefit of compounding can give better returns in the long run.

Set goals before making funds for marriage

Before starting to invest for marriage, it is most important that you understand your goal clearly. You have to decide how much the wedding is likely to cost in total. This should include venue booking, food, clothes, jewellery, photography, decoration and other expenses. When you have an idea of ​​the total amount required, then it becomes easier to plan your investment accordingly.

Why is it important to decide the timing of investment

While planning SIP for marriage, it is important to know how much time you have for investment. The longer the investment period, the greater the risk appetite and the possibility of better returns. It is not considered right to take too much risk in a short period of time, hence it is very important to choose the right fund as per the time.

Which fund to choose if your tenure is less than 2 years?

If your marriage is going to happen in less than 2 years, then it would not be wise to take too much risk in this situation. In such a situation, debt fund or liquid fund are considered better options. These funds have low or moderate risk and focus more on capital safety. Although the returns in these may be lower than equity funds, but stability is more important for a fixed goal like marriage.

How to invest in a period of 2 to 5 years

If you have a time horizon of 2 to 5 years, you can opt for Hybrid Fund. Hybrid funds have a balance of both equity and debt. This keeps the risk under control and the possibility of returns also improves. This is perfect for those who want to grow their funds by taking some risk, but do not want to rely entirely on equities.

Why equity funds are better for long term

If your marriage is still many years away, then Equity Fund may be the best option for you. Equity funds are certainly affected by market fluctuations, but these funds have the potential to give the highest returns in the long run. The longer the investment period, the less the impact of market volatility and the greater the benefit of compounding.

Lump sum investment or SIP, what to choose

You have two ways to invest in mutual funds. First lump sum investment and second SIP. If you already have substantial savings and can invest at once, lump sum investment may be an option. But if you want to invest a little money every month from your salary, then SIP is the best way. In SIP, there is less concern about market timing and the investment gets averaged automatically.

How to make wedding fund through SIP

The biggest strength of SIP is regular investment. Suppose you invest a fixed amount every month and continue it for several years. Over time this small amount can become a big fund. This is why SIP is considered the easiest and most effective way for a goal like marriage. In this, the budget does not deteriorate and the future goals are also gradually achieved.