Child’s wedding is not only an emotional moment for parents but also a financially exhaustive process to follow on. Gifts, apparels, hall bookings, catering, and a long list of experiences that you want to give your child at their wedding. It also requires a significant amount of money to spend at one go just for a 5 day event in India.
A massive growth has been seen in the wedding industry only because people are willing to spend. You must also have various dreams for your child’s wedding, but have you given the finances a thought as to how you are going to afford it?
Here we came up with a three step process on how to invest efficiently to afford your child’s wedding:
Decide on a budget
First of all you need to understand that there are various levels of weddings that can be conducted on the basis of expenses you can afford to bear. You must have thought of how your child’s wedding should be and what is reasonable for you to spend according to your financial conditions currently. Decide on an overall budget of the type of wedding hall you are dreaming of, for how many days it will continue, what would be the cost of gifts, and many other things.
Essentials of investment
Once you have decided on your budget, say ₹50 lakhs, now you have to decide on the basic essentials of investments. Risk-appetite will help you in deciding which asset would be the best for you. The difference between your child’s current age and the age at which you are assuming to get them married will help you in deciding on the time horizon you have to invest in.
Financial goal would be getting funds for your child’s wedding. These essentials of your investment help you in deciding the amount of SIPs, investment scheme options in which you can spend in and your portfolio diversification.
Select and start
After deciding on the essentials of investment, right selection of scheme according to your risk-appetite and expected rate of returns. You must evaluate the fund manager’s skills and historical performance of the mutual fund scheme before investing. Only evaluating your mutual fund scheme is not enough as there are various asset management companies that are providing the same category of schemes.
Hence, it becomes necessary to analyse that your mutual fund company also has the capability to give your returns and is viable enough to sustain your financial goals.
By following above mentioned steps, you can efficiently invest towards the goal of affording your child’s wedding by aligning them with your dreams. Always understand your priority as well. If you are looking forward to use your retirement corpus in your child’s wedding, today might be the best day to change your decision and start your investment early for your child’s wedding.
Anushka Trivedi is a freelance financial content writer. She can be reached at anushkatrivedi.com