The Investment Strategy You Should Implement for Wedding Expenses

Last Updated : Feb. 28, 2022, 5:11 p.m.

Wedding celebrations involving rituals along with dance and other acts by attendees make all of us savour these moments forever. But many due to financial constraints have had to limit their celebrations. However, if you start investing early, living such grand wedding experiences becomes attainable. So, don’t be reliant only on your family for such experiences. Start investing in the right financial instrument and systematically to ensure the same. Of course, we can guide you through this post. Let’s begin checking the investment strategy for wedding corpus.

Let’s Check First the Investment Value to Accumulate for Wedding

Before figuring out the best investment plans for a wedding, let’s first know the amount to accumulate. Everyone has a certain budget in mind for a wedding. Given the possibilities of the last-minute increase in wedding expenses, up your budget by some and plan accordingly. So if you have a budget of INR 8 lakh for a wedding, hike it to INR 10 lakh to accommodate unforeseen expenses.

So, How to Make a Wedding-related Investment?

Assuming you’ve just started working and have about 8 years left before you get married. So, you should incorporate investment strategy accordingly. And while doing so, don’t lose sight of your risk appetite either. Those with a high-risk appetite should consider investing the maximum chunk in equities, whereas others would find investing in bank deposits and debt instruments suitable. But given the amount to accumulate, it will be ideal to invest the maximum in equities as they are considered the best bets for wealth creation. Assuming you are in your early 20s, you will most likely have a high-risk appetite. A few investments in relatively safer instruments will act as a backup should your equity investments face a slump in between.

How Much Equity Investments Should You Make Monthly?

A monthly investment of around INR 8,000 will most likely help you build INR 10 lakh for a wedding. Assuming the annual return rate remains 12%. To compensate for any equity hiccups, keep some in savings accounts, fixed deposits or even debt instruments such as bonds, debentures, etc. One more alternative is to keep raising your equity investments year after year. That will only help you accumulate the wedding corpus on time in case of a slump in equity investment returns.

But How to Invest in Equities?

You can invest directly in stocks to generate the desired wedding corpus. But choose the right ones and make adjustments to your portfolio as and when needed to stay ahead in the investment race. Doing all these successfully requires in-depth market expertise. In its absence, you can invest in stocks through mutual funds where fund managers manage your investment portfolio. They choose quality stocks at the right price using their market expertise to bag you the corpus you look for over time. That said, they don’t share investment risks – you need to bear the same even then. What they can do from their end is to ensure a portfolio that responds positively to market triggers. One more option is unit-linked insurance plans (ULIPs) which provide life insurance too in case of your death. The investment methodology here remains much the same as in mutual funds.