Mutual fund investment for wedding: Marriage is an important stage of life and financial preparation for it is very important. In today’s time, mutual funds have emerged as an excellent means through which you can create a huge corpus for the huge wedding expenses. With the right strategy and starting to invest on time, you can make your dream wedding come true without any debt. Let us know what kind of fund you should choose according to your needs and time.
accurate estimation of expenses
Before starting to invest for the wedding, you should prepare an outline of the total expenses to be incurred. It is important to include venue, catering, jewelry and other small and big expenses so that the goal remains clear. Along with estimating the expenses, also decide how much time you have left for investment.
short term options
If you have less than two years left for your marriage, you should take risks less. At such times, debt funds or liquid funds are considered the safest and most suitable investment options. These funds have the potential to give better returns than bank savings accounts while keeping your principal safe.
medium term strategy
When two to five years are available for marriage, it is wise to opt for a hybrid fund. In hybrid funds, money is invested in both equity and debt, thereby maintaining a balance of risk and return. It is best for those who want good profits along with protection from market volatility.
long term investment
If marriage is for more than five years then it is most beneficial to start SIP in equity funds. Investing for a long time gives the benefit of compounding, due to which even small monthly savings turn into big funds in the future. Equity funds offer excellent long-term returns despite market risk.
SIP or lump sum investment
The choice of investment method depends on your current financial situation and savings. If you already have capital deposited then you can invest it in lump sum otherwise monthly SIP is the simplest medium. Through SIP, you can maintain discipline by investing a part of your income regularly.
Also read: India gets new market amid tariff war with America! There is huge export happening in this country, record jump of 33%
Need for regular review
It is very important to review your investment portfolio from time to time so that you move towards your goal. The portfolio should be rebalanced if there are major changes in the markets or if your goals change. Taking the right decision at the right time is the real identity of a successful investment plan.
Comments are closed.