New Delhi: Weddings in India are synonymous with grand celebrations and high expenses. For parents planning their daughter’s wedding, accumulating a corpus of ₹1 crore can seem daunting. Recently, during ET Now’s “The Money Show”, NRI investor Rajesh Sahni, originally from Kanpur and currently residing in Nigeria, shared his strategy to build a wedding fund for his daughter.
Rajesh has been consistently investing in India through monthly SIPs of ₹90,000 across various mutual fund schemes, including HDFC Flexicap, HDFC Mid Cap, HDFC Multi Cap, Bandhan Small Cap, Kotak Contra, and two Motilal Oswal schemes. He now plans to increase his SIP by ₹30,000 per month and seeks guidance on whether to diversify into new funds or consolidate within existing ones. His primary goal is to accumulate ₹1 crore for his daughter’s wedding, while also continuing long-term investments for his 17- and 14-year-old children.
Expert Advice
Financial advisor Aditya Shah, founder of Hercules Advisors, emphasized the importance of setting clear financial goals. Beyond weddings, parents should plan for children’s education and retirement while investing in mutual funds.
Shah also noted that Rajesh’s portfolio was spread across many funds, which could dilute returns and make tracking performance challenging. He advised consolidating investments into four strong, well-performing funds rather than starting new schemes.
Suggested SIP Allocation:
- HDFC Flexicap: ₹30,000
- Bandhan Small Cap: ₹40,000
- UTI Nifty Next 50 Index Fund: ₹30,000 (passive index fund ensuring balance in large-cap holdings)
- HDFC Midcap: ₹20,000
This totals ₹1.2 lakh per month, offering a well-balanced portfolio across large-cap, mid-cap, and small-cap funds, suitable for an 8–10 year investment horizon.
Maintaining the SIP:
Shah advises continuing SIPs until the target timeline. As the wedding approaches (approximately three years away), gradually reducing equity exposure and shifting toward hybrid or debt funds will help protect accumulated gains. Two to three years prior, moving from pure equity to balanced advantage or short-duration debt funds can secure profits, while switching entirely to debt funds one year before the wedding ensures liquidity and reduces market volatility risk.
Conclusion:
With disciplined savings, strategic SIP allocation, and a gradual exit strategy, Rajesh Sahni can confidently achieve the ₹1 crore goal for his daughter’s wedding. Simultaneously, this approach allows continued wealth creation for other long-term objectives, including children’s education and retirement planning.
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