How To Save Rs 25 Lakh For Your Wedding In Just 5 Years

Marriage is not just a personal milestone, but also a grand family affair in India involving lavish celebrations, multiple days of rituals, and a large turnout of guests. There are also the wedding attire and jewellery to factor in when planning expenses.

Saving for an Indian wedding may certain seem daunting. Hence, it's parents who typically foot the bill, or at least partially fund the wedding expenses.

However, if you wish to save for your wedding, it will require medium-term planning and strong fiscal discipline. Assuming someone wants to save around Rs 25 lakh for their wedding, they will need to have a minimum-term investment outlook of five years.

With disciplined financial planning and a committed investment approach, this target can be achieved easily.

Since gold is a very critical part of Indian weddings, whatever amount of this precious metal is needed should be bought as early as possible. Gold has historically given 10% annual returns and sometimes outperformed stock markets significantly. Setting aside a part of your investment in gold will help to diversify your portfolio. Additionally, if you still wish to accumulate Rs 25 lakh, you may invest in stocks and equity instruments for potentially higher returns.

For this purpose, investment in mutual fund Systematic Investment Plans (SIP)s could be a suitable option. Here’s how it will work:

Time: 5 years

Goal: Rs 25 lakh

Monthly investment needed: Rs 25,000

Expected return: 12%

Annual step-up: 10%

Invested amount: Rs 18,31,530

Estimated returns: Rs 6,29,895

Total value: Rs 24,61,425

With the help of a step-up SIP scheme, which requires you to increase your investment contribution by some value over a period, you can achieve the goal of building a nearly Rs 25 lakh corpus in five years.

To be clear, these estimates are based on the historical performance of mutual funds. Stock market investments are never guaranteed. It is always recommended to consult financial experts before making significant financial commitments to avoid any fiscal stress.