Start Early, Marry Smart: How To Build A Rs 15-Lakh Wedding Fund By 30

Indian weddings are known for grand celebrations and elaborate rituals. However, the special day can also be financially burdening due to hefty expenses. Typically, weddings are tied to social status and cultural norms, which prompt people to spend lakhs even on an average celebration tied to marriage. 

These days, simple things such as photography, makeup and outfits can alone reach Rs 3-5 lakh. Food and venue expenses add significantly more burden, especially since Indian weddings are rarely a private affair. To manage these costs comfortably, it’s wise to start planning early. A long-term investment strategy could be helpful in saving a sizable amount to fund your big day.

If you’re under 25 and just beginning your career, you can still prepare for a wedding around age 30. A five-to-six-year tenure could be a suitable horizon to build a savings pool. You can easily achieve your goal with a few simple steps like budgeting, systematic investments and smart money management. 

Let’s take a look at an investment strategy to build a corpus of Rs 15 lakh to finance your wedding over a horizon of six years. The wedding fund can be accumulated with a mix of assets. A diversified portfolio comprising gold, mutual funds and fixed deposits (FDs) could be helpful in ensuring healthy returns while minimising risks.

Since gold is an integral part of Indian weddings, buying it early is a smart financial move. Historically, gold has delivered around 10% annual returns. In the past year alone, it surged by more than 50%, significantly rewarding investors. With analysts remaining bullish on the yellow metal, early accumulation can help strengthen your investment portfolio.

Target: Rs 5 lakh

Time: 6 years

Expected return: 10%

Monthly investment: Rs 5,000

Invested amount: Rs 3,60,000

Estimated returns: Rs 1,34,644

Total value: Rs 4,94,644

Mutual fund investment in equities is considered a smart way to gain exposure to the stock market. Through systematic investment plans (SIPs), mutual funds allow investors to build a portfolio through monthly contributions.

Historically, large-cap mutual funds have given around 12% returns annually. Investors can easily benefit from the power of compounding in mutual fund investments by using the step-up technique. In this, an investor can increase their SIP value at fixed intervals, such as annually.

Here’s How It Works

Target: Rs 7 lakh

Time: 6 years

Step-up: 10% annual

Expected returns: 12%

Invested amount: Rs 4,62,936

Estimated returns: Rs 1,94,930

Total value: Rs 6,57,867

Investment In Fixed Deposits

Investing in fixed deposits offers stable, risk-free returns with guaranteed interest through banks.

Target: Rs 3 lakh

Time: 6 years

Expected return: 6.15% (HDFC Bank)

Investment needed: Rs 2.3 lakh

Interest earned: Rs 1,01,000

Final value: Rs 3,31,000

As we can see, for a six-year tenure, an investor needs an average monthly investment of nearly Rs 15,000. With the power of compounding, this investment can rise to Rs 15 lakh, preparing you well for major wedding expenses.

Investors should note that the returns are an estimated value based on historical performance of these assets. Unlike FDs, returns in equities and gold are never guaranteed. It is advisable to consult a financial expert to prepare for your goals based on your risk appetite to avoid any financial strain.