Here's how you can plan your wedding through mutual fund investments

mutual fund wedding planning
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The big fat Indian wedding has become more expensive in the past few years. Destination weddings, pre-wedding photoshoots, exotic honeymoons, etc. have become a norm. All of this translates to more expenses for the couple and their families. To ensure that that your wedding expenses don’t put you under a financial burden, there is a convenient method that can allow you to cover the expenses fully or partially. Here’s how to plan your wedding through mutual fund investments:

  • Table of contents:
  1. How to plan wedding through mutual fund investments?
  2. #1 The budget
  3. #2 The timeline
  4. #3 The investing strategy
  5. Why you should invest in Bajaj Finserv Mutual Fund
  6. FAQ

How to plan wedding through mutual fund investments?

#1 The budget

Financial goals make sense only if you have clear and realistic expectations in the first place. Make an expense list for your wedding, right from the guest count and number of ceremonies to the venue and food. Wedding outfits, engagement rings and other gifts need to be accounted for as well. Also charges for services provided by photographers, videographers, stylists, wedding planners, etc. must be factored in.

After this, create a rough estimate and add 10-15% as the inflation rate to your total expenses. The final number is the corpus you want to create with your mutual fund investment.

#2 The timeline

You must get started with saving for your wedding as early as possible. The sooner, the better, we say. Once you have the timeline defined, you can create an investment strategy.

The first thing you need to decide here is: “How much I can set aside every month to invest towards my wedding?”

If you have a smaller budget and a longer timeline, then you can start a Systematic Investment Plan (SIP). Start with how much you can set aside for each instalment and see your money grow in the long run with corresponding growth in market.

If you are a conservative investor with a shorter investment timeline like 6 months to 3 years, a debt fund might be a relatively better investment option.

If you have a moderate-to-high risk appetite, you may want to invest a lumpsum in equity funds that have relatively higher growth potential. Equity funds also offer potentially risk-adjusted returns in the long term.

If you are less than 3 months away from your wedding, you can go for overnight funds since they predominantly invest in instruments that mature on the next business day. Overnight funds are relatively low-risk investment and tend to offer relatively better returns than savings account. However, in case of overnight funds, the returns are not fixed and are subject to market risks while savings account tend to have a fixed return till it is changed by the Bank.

#3 The investing strategy

Start with creating a balanced and diversified portfolio with investments in equity as well as debt funds. The actual ratio of equity and debt funds will depend on these factors:

  • How far or close you are to your wedding?
  • What is your wedding budget?
  • What is your risk tolerance level: low, moderate, or high?
  • How much money can you set aside for mutual funds?

Why you should invest in Bajaj Finserv Mutual Fund

Bajaj Finserv Mutual Fund offer schemes that can help you meet your short-term and long-term investment goals, including funding your wedding. If you are closer to your wedding date, the Bajaj Finserv Liquid Fund can provide considerably reasonable return potential than traditional products such as savings accounts and Fixed Deposits (FDs). It offers a low-to-moderate risk and high-liquidity investment option by investing in the money market and debt instruments with a maturity period of up to 91 days. However, the risk associated with liquid fund is higher than savings account or fixed deposits.

If your wedding is more than 3 years down the line, you can consider wedding planning by investing in the Bajaj Finserv Flexi Cap Fund. This scheme has a high-growth potential over the long term since it follows megatrends to invest in equity and debt instruments across market capitalisations and industry sectors.

In conclusion, the investment in mutual funds for wedding planning can be a suitable option for most investors. People getting married within one year can invest in debt funds like overnight funds, liquid funds, and money market funds to generate returns that can help fund a part of the wedding. People whose wedding is far off in the future, can invest in mutual funds to create a large corpus for their dream wedding. If you think it may be too late to invest in mutual funds to pay for your wedding, you can still get started with a mutual fund investment to start your married life with a stronger financial base.


How should I select a mutual fund house for my wedding goals?

Before selecting any fund house, always consider the following options: Credibility of the fund house, fund manager’s credentials, investment philosophy of the fund house and the overall performance.

How to decide which scheme to invest in?

The selection of a mutual fund is dependent on several factors. These include investment horizon, risk tolerance, and return anticipation. When choosing a fund, investors should also account for factors such as fund manager’s expertise, and investment philosophy of scheme. You, as an investor, will have a clear concept of where you want to invest once you have done your research. Always consider consulting a finance specialist for advice.

Should I consider lumpsum investment?

Lumpsum investment should be done in case you have a large sum of money saved and ready to be invested. An SIP can be started if you have planned to invest this money long before your wedding. Always speak to a financial specialist before making such decisions.

Do flexi cap funds perform better than other funds?

Flexi cap funds seek to diversify across companies and sectors thus seeking to mitigate impact on capital that might otherwise be relatively more due to overconcentration in one industry. Flexi cap funds have the potential to benefit investors in the long run by diversifying across industries and reducing risk.

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
This document should not be treated as endorsement of the views / opinions or as an investment advice. This document should not be construed as a research report or a recommendation to buy or sell any security. This document is for information purpose only and should not be construed as a promise on minimum returns or safeguard of capital. This document alone is not sufficient and should not be used for the development or implementation of an investment strategy. The recipient should note and understand that the information provided above may not contain all the material aspects relevant for making an investment decision. Investors are advised to consult their own investment advisor before making any investment decision in light of their risk appetite, investment goals and horizon. This information is subject to change without any prior notice.