Planning for children’s marriage starts when the children are young. You mustsave and invest as early as possible to give the money the time to grow into alarge corpus. You must choose an investment that offersreturn above inflation over the long term.
Invest in equity or fixed income securities as pery our risk profile toaccumulate the corpus at the time of the financial goal. You get the benefit ofthe power of compounding or return on returns, wherea small investment grows into a large sum of money over some time
You must plan the investment depending on the timehorizon and risktolerance. If you are a conservative investor, youcan invest in fixed income securities that offer return above inflation oversome time. The aggressive investor can choose equity investments that providehigher returns for ahigher risk. You may invest in equity investmentswith a time horizon of atleast five to seven years, to achieve the financialgoal of children’s marriage.
Why Should You Plan Your Child’s Marriage?
1.Planning helps you to handle the sudden expenses associated with thechild’s marriage.
2.Timely investments help counter the impact of rising inflation rates.
3.You will not have to disturb your retirement fundor even the money setaside for children’s education.
4.Building a steady corpus by setting aside a small amount each month relieves financial stress.