No Budget For Your Dream Wedding? Here's How To Accumulate Funds

A wedding is one of the most memorable events in your life and it brings families, relatives and friends together. You want the best of everything for your most important life event. But your dream wedding comes with huge expenses. From the venue, catering to best of outfits, the wedding budget may even be higher than your savings.

Over the years, weddings in India have transformed into large-scale events, with the rituals and celebrations extending up to a week in some cases.  

According to a report by the wedding planning firm WedMeGood, the average wedding budget in India stood at Rs 36.5 lakh, while destination weddings reached an average of Rs 51 lakh in 2024.

Many people do not hesitate from taking loans to fund their weddings. However, financial experts have always advised against taking loans for unnecessary spending, as they can lead to financial crisis in the long run. You can accumulate funds for your dream wedding with a little planning and disciplined saving for a few years. Options like investing in mutual funds could be effective in accumulating the money.

Let’s take a look at how you can garner the funds for your dream wedding in 5 years.

Systemic contributions towards mutual funds are a popular financial tool to accumulate wealth over a period of time. With a 5-year investment horizon, you can build a sizable corpus to fund the wedding budget through strategic mutual fund investment.

Since the investment period is relatively shorter at only 5 years, it is recommended to look for mutual funds that can offer good returns. In such cases, debt mutual funds are generally recommended for their relatively lower risks compared to equity funds. Debt mutual funds offer greater stability as they invest in fixed-income securities like bonds and government securities. 

A debt mutual fund with an annualised return of at least 13% in 5 years may be a good option to arrange a wedding fund. For this, one can contribute as low as Rs 10,000 monthly to accumulate Rs 8.3 lakh over 5 years. 

If one increases their SIP to Rs 15,000 a month, their final corpus amount at the end of 5 years will be Rs 12.4 lakh, assuming an annual return rate of 13%. If one can increase their monthly investment to Rs 20,000, the total corpus will grow to Rs 16 lakh in 5 years. Meanwhile, a monthly SIP of Rs 30,000 can result in the accumulation of nearly Rs 25 lakh fund over 5 years at the assumed interest rate.