Where to park wedding fund
Hi folks! I'm planning to get married in over a year from now. I don't want to touch my portfolio for this and hence starting a wedding fund where I'd pause my investment for a year and route the money into this fund. Suggest an instrument class where I should park this money. It'd be roughly 70k/ month.
Also would love to know how did you finance your wedding? Any tips?
You can park in my account without interest or return guarantee 😉
Depends on in how many years you plan to marry. If >= 4 years, put most of your money in an index fund or else invest in ultra short term funds. Former will give you ~12% annual returns while the latter around 8-9%.
Invest 10% of your savings in gold, which can act as a hedge if gold prices shoot up and there is some jewellery shopping to be done close to the wedding time.
Liquid funds or a simple RD should work fine. I'm assuming your main aim here is preserving capital and not high growth.
Most banks are offering ~7.1% interest on RDs > 1yr.
High yield bank savings account
SIP it. Have a spread between gold, equity with a small amount in debt. If it’s lump sum, put it into a liquid fund and do an STP.
If your plans are to get married in a year, don’t sell these funds. You’ll incur an STCG. Take a loan against them. QuickLend sort of products offer loans at low prices, lower than CAGR of MFs.