Want royal wedding for child? Here is how much you need to invest to get Rs 50 lakh in 10 years

India is known for its big fat weddings. People invest big to celebrate weddings. It includes expenses on beautiful locations, attire, jewellery, gifts, food, events and what not. According to a KPMG report, the wedding industry in India was estimated to be around $40-50 billion in 2018 and continues to grow rapidly at a rate of 25-30 % annually. As the industry continues to grow, ṭhe expenses will increase, making the job of parents more difficult. A grand wedding could cost somewhere around Rs 50 lakh and if planned well, this amount can be saved over 10 years. 

Hemant Rustagi, CEO, Wiseinvest Advisors told Zee Business Online, ''If you want to invest a fund of Rs 50 lakh in wedding after 10 years, it can be done with the help of a monthly investment. While there are number of asset classes that can be picked for an investment purpose, but here we can probably take much more risk and invest into equities.''

Where to invest?

Independent Financial Advisor, Deepesh Raghaw told Zee Business Online, ''Expensive wedding is not a need, it's a lavish goal, which you aim to get fulfilled on time. So, here you should take a bit higher risk and invest into equities. In India, equities have given returns around 15 per cent in the last decade. Keeping a goal for 10 years, you can invest a monthly little part for about six straight years in equities. Afterwards to leverage the risk and increase net investment value, you can put 20% of money from equities to debt funds every year.'' 

Raghaw explained that by mixing up both equity and debt, you can create a corpus of Rs 50 lakh in 10 years, with an average returns of 10% p.a post taxation. ''You just need to invest into equities for 6 years and from 7th year onward, start putting 20% of equity amount into debt, as it is better for short term'', he added. 

How much to invest?

''An amount of Rs 25,000 per month is required to be invested every month for 6+4 year window in both equity and debt fund. One can start with a multi-cap fund and go for a debt option in the last 4 years,'' Raghaw explained. While the investment amount should be increased every year to ensure more returns in future. 

Things to keep in mind

1. Patience is the key: Investment requires patience, there is no shortcut to earn huge money. Have faith in your instincts and be there for a long term tenure to get the best results.

2. Increase investment every year or 6 months: ''Just investing a fixed amount for 10 years, will not let you meet your goal. As you will increase you income after every period or so, your investment into assets should also increase with time,'' Rustagi mentioned. 

3. Don't evaluate daily values: Mutual funds or most of the asset classes are subject to market risk. Evaluating it daily could disturb your mind and discourage your patience. Volatility and risk are the key elements of equity investments but can be leveraged in a long term duration.