Best Mutual Funds to Invest for Your Daughter’s Marriage
Indian weddings are the ones which are known for their lavishness. With lights, food, songs, and dances, the color that blinks the most is gold. Well, as all that glitters come with a price tag, thus the culture of exchanging gold in the Indian weddings is definitely an expensive affair which needs prior planning and investing. Talking of prior investing, it’s easier to walk step by step than investing a big corpus at once and seek interest on it.
So, how are you planning to manage this expense? Here's a detailed plan made by experts just for you.
Table Of Content
Weddings today are more extravagant and opulent than they used to be a few years back. But a little bit of planning with your investments and patience can ensure that you’re well prepared for D-day! Here’s how and where to invest depending on your investment tenure. Just remember, starting early is the key.
Assuming you’ve 15 years in hand and you can invest around Rs. 10,000 per month or INR 6000 with 10% annual step-up for your daughter’s wedding, and below are the funds you can choose to invest in for a corpus of around Rs 60 lakh. Thus, with an expected return of 14% p.a which is quite realistic when the best-recommended equity funds are considered, you can easily reach your goal. The risk appetite taken here is high.
- 100% Paperless
- No Transaction Charges
- Easy to Invest
- Safe & Secure
Child Care Fund:
ICICI Prudential Child Care Fund: Gift Plan
(Investment Percentage: 25% of the Total SIP Amount)
ICICI Prudential Child Care: Gift Plan is a mutual fund scheme which intends to provide capital gains as a gift to the children. It is a solution-oriented aggressive hybrid fund which invests in equity as well as debt instruments. The equity allocation is higher than the debt and is generally in the ratio of 70:30. Compared to the other schemes in the aggressive hybrid mutual funds category, it has performed remarkably well and provided some of the best returns. The average return that the scheme has provided since inception is 15.84%. Although the expense ratio is slightly higher, the returns it has provided makes it completely worthy.
| Basic Information- ICICI Prudential Child Care Fund: Gift Plan (G) | |
|---|---|
| Category | Hybrid: Aggressive Hybrid |
| Benchmark | NIFTY 50 Hybrid Composite Debt 65:35 |
| Launch Date | 31-Aug-01 |
| Asset Size | Rs. 601 crore (As on Jan 31, 2019) |
| Expense Ratio | 2.56% (As on Jan 31, 2019) |
| Minimum SIP Investment | Rs. 100 |
| Minimum Lumpsum Investment | Rs. 5000 |
| Return Since Inception | 15.84% (As on Feb 21, 2019) |
| Exit Load | 0 |
It is currently investing in 19 stocks with the highest sector allocation in financial, healthcare, technology, communication, and automobile. The top five holdings of the scheme are Infosys, Axis Bank, HDFC, SBI, and Spice Jet all of which hold good growth prospects.
Multi-Cap Fund:
Mirae Asset India Equity Fund
(Investment Percentage: 30% of the Total SIP Amount)
Being a five-star scheme of the multi-cap category, Mirae Asset India Equity Fund aims to maximize the long-term capital appreciation for the investors by finding opportunities for successful investment across the market cap. It seeks opportunities resulting from the Indian economic growth and its structural shifts and invests in equities and its related instruments. Following the diversified investment approach with 59 stocks in its investment basket, the fund managers Gaurav Mishra, Harshad Borawake, and Neelesh Surana have proved their management skills by delivering 23.13% returns in the 10 years period outperforming its category’s average with a great margin of 7 percentage points approx as on Feb 21, 2019.
| Basic Information- Mirae Asset India Equity Fund (G) | |
|---|---|
| Category | Equity: Multi Cap |
| Benchmark | S&P BSE 200 TRI |
| Launch Date | 4-Apr-08 |
| Asset Size | Rs. 10,343 crore (As on Jan 31, 2019) |
| Expense Ratio | 2.05% (As on Jan 31, 2019) |
| Minimum SIP Investment | Rs. 1000 |
| Minimum Lumpsum Investment | Rs. 5000 |
| Return Since Inception | 15.33% (As on Feb 21, 2019) |
| Exit Load | 1% for redemption within 365 days |
Not only in 10 yrs period, in one, three, five, and seven years as well it has generated 1.93%, 18.29%, 18.41%, and 15.97% trailing returns as on Feb 21, 2019, and outperformed its benchmark and category’s average with a great margin.
Mid Cap Fund:
L&T Mid Cap Fund
(Investment Percentage: 25% of the Total SIP Amount)
A five-star rated mid-cap fund which is known for its exceptional returns, L&T Mid Cap Scheme was launched on Aug 09, 2004 and has produced an average return since the launch of 18.84%. Its portfolio currently consists of 79 stocks majorly from the financial, construction, engineering, healthcare, and services sector.
| Basic Information- L&T Midcap Fund (G) | |
|---|---|
| Category | Equity: Mid Cap |
| Benchmark | NIFTY Midcap 100 TRI |
| Launch Date | 9-Aug-04 |
| Asset Size | Rs. 3,665 crore (As on Jan 31, 2019) |
| Expense Ratio | 2.14% (As on Jan 31, 2019) |
| Minimum SIP Investment | Rs. 500 |
| Minimum Lumpsum Investment | Rs. 5000 |
| Return Since Inception | 18.84% (As on Feb 21, 2019) |
| Exit Load | 1% for redemption within 365 days |
The fund was successful in generating mind-blowing returns for its investors surprising them at every period, be it 3, 5, 7 and 10 years period giving 16.60%, 22.79%, 18.29%, and 23.85% returns, respectively as on Feb 21, 2019 outperforming its benchmark and category’s average with a good margin. Investing in this scheme for accumulating corpus for your daughter’s wedding is one of the best investment decisions you will take in life. However, remember that you need to be patient and have a high-risk appetite to invest in such a fund of the mid-cap category.
Small Cap Fund:
SBI Small Cap Fund
(Investment Percentage: 20% of the Total SIP Amount)
Currently, it holds the position of the best small-cap fund, and it is all because of the strong fund management of the scheme. Being an exceptional product of one of the most famous AMCs in India SBI Mutual Fund, the fund managers of SBI Small Cap scheme looks for five important attributes before finalizing a stock, i.e., competitive advantage, return on capital, growth, management, and valuation.
| Basic Information- SBI Small Cap Fund (G) | |
|---|---|
| Category | Equity: Small Cap |
| Benchmark | S&P BSE Small Cap TRI |
| Launch Date | 9-Sep-09 |
| Asset Size | Rs. 1,504 crore (As on Jan 31, 2019) |
| Expense Ratio | 2.44% (As on Jan 31, 2019) |
| Minimum SIP Investment | Rs. 500 |
| Minimum Lumpsum Investment | Rs. 5000 |
| Return Since Inception | 17.93% (As on Feb 21, 2019) |
| Exit Load | 1% for redemption within 365 days |
It is currently following a diversified investment approach and has 49 stocks in its investment basket. The best part about the fund is that it has quite a maneuverable size of asset worth Rs 1,504 crore as on Jan 31, 2019, which helps it to pick good quality small-cap stocks from the market. It has not completed 10 years in the market but has accumulated enough trust of investors and experience which makes it one of the best from its space.
- 100% Paperless
- No Transaction Charges
- Easy to Invest
- Safe & Secure
Note: This is just one plan to process, in case you have a goal of a lesser or higher amount than what is assumed here, you can fluctuate the invested amount per scheme as per your needs. To seek recommendations concerning your personalized goal, contact us directly at MySIPonline.
Summing Up
In the time now, the cost of a child’s marriage should be adjusted with the inflation to know to estimate the future cost. Depending upon your daughter’s current age and your risk-taking capacity, choose the best plans for yourself.
If you’re thinking about how we can help you, remember MySIPonline works as your personal financial advisor. So, let’s first understand your needs and then we will suggest you invest in the best investment plans depending upon your financial goal.
For the investors’ ease, all the investments in mutual funds can be made online through our online portal and we will monitor them for you on a regular basis.
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