What is Child Marriage Planning?

Planning for children's marriage starts when the children are young. Parents must save and invest as early as possible to give the money the time to grow into a large corpus. They must choose an investment that offers return above inflation over the long term. Invest in equity or fixed income securities as per your risk profile to accumulate the corpus at the time of the financial goal. One get the benefit of the power of compounding or return on returns, where a small investment grows into a large sum of money over some time. As building a steady corpus by setting aside a small amount each month relieves financial stress.

So, parents must plan the investment depending on the time horizon and risk tolerance. If they are a conservative investor, they can invest in fixed income securities that offer return above inflation over some time. The aggressive investor can choose equity investments that provide higher returns for a higher risk. They may invest in equity investments with a time horizon of at least five to seven years, to achieve the financial goal of children's marriage.

In this case also, Mutual funds are an excellent tool to help the parents achieve the goal of your children's marriage investment plan. But before investing, however, they obviously need to find out their risk appetite with the help of a true financial guide or advisor. Because the right asset allocation or the allocation to equity, debt, or gold will depend on the investor's risk appetite. With the right mix of these three asset classes, the investor will have the required funds for his or her child's marriage when they need it.

Why Should The Parents Plan For Their Child's Marriage?

Planning helps to handle the sudden expenses associated with the child's marriage. As well as timely investments help counter the impact of rising inflation rates. Parents will not have to disturb their retirement fund or even the money they set aside for children's education.