Congratulations on your financial awareness and proactive wedding planning for your daughter. It's crucial to recognize the influence of inflation on future expenses for this significant event. We hope you've accounted for this aspect in your preparations.
If you believe that Rs 35 lakh will suffice for your daughter's wedding in ten years, we suggest initiating a monthly savings plan of Rs 15,000 through Mutual Fund SIPs. With an expected annual return of 12%, you have a good chance of accumulating the desired Rs 35 lakh within the specified timeframe. However, without factoring in the projected inflation rate, the required amount could increase to Rs 63 lakh, assuming an annual inflation rate of 6%. In such a scenario, you'd need to contribute Rs 27,000 per month to your Mutual Fund SIPs over the next ten financial years.
Since your time horizon is 10 years, you can consider investing in equity mutual funds to potentially benefit from market growth. To diversify, allocate your investments across two to three funds, including balanced advantage funds and mid-cap funds.
Please note that these calculations are based on certain assumptions, such as expected inflation and equity market returns. To be cautious, we recommend considering a monthly savings commitment of Rs 30,000, approximately 30% of your current take-home salary. This approach provides a more secure path to achieving your future financial goals.
