SIP for marriage expenses: Where to invest for accumulating money? A guide on Mutual Fund suggestions

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I want to save money for my niece and nephew for their marriage. I don’t want to overburden myself so plan to keep a small amount safely for them. I have two nephews and two nieces, one nephew is in college while the other is in 12th. One niece is in her second year of college while the other is in class 5. Could you suggest some SIP specifically for marriage purposes? Should I start SIP for all individually or one would do depending on the age gap? I belong to a middle-class family.

By Balwant Jain, tax and investment expert

I appreciate your concern to provide for marriage expenses for your niece and nephew. Since the ages of nephews and nieces are different, the mutual fund scheme suitable for making investments for each one of them would also differ. As you have not mentioned the time within which each of them will get married, I would give you a broad idea about the mutual fund category in which to start the SIP. You should invest separately for each of the nephews and nieces to be able to monitor the growth of the investments against the targeted amount.

It seems you do not understand much about mutual fund investing and periodic monitoring and rebalancing of investment is very important I would recommend you invest in index funds where you do not have to monitor and rebalance periodically.

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In case the marriage is away beyond five years and within seven years, you can start investing in any large cap. Of late a significant number of large-cap schemes have not been able to beat their benchmark, I would suggest you invest in an Index fund representing the entire gamut