How Much SIP to Save ₹25 Lakh for Child's Wedding in 10 Years?

Picture this: It’s Sunday evening. You’re unwinding with your partner, scrolling through social media, and suddenly a lavish wedding video pops up. Your partner turns to you, a slight worry creasing their brow, and asks, "How much do you think *our* little Anaya's wedding will cost when she grows up? We should really start saving." Sound familiar? It’s a thought that crosses the mind of almost every parent in India. And often, the number ₹25 lakh is thrown around as a decent ballpark for a comfortable wedding a decade or so down the line. But here’s the million-dollar (or rather, ₹25 lakh) question: **How much SIP to save ₹25 lakh for a child's wedding in 10 years?** Let's break it down, friend, exactly how I've advised countless professionals like you in Pune, Hyderabad, and Chennai over my 8+ years.

The Inflation Monster: Why ₹25 Lakh Today Isn’t Enough for a Wedding in 10 Years

Here’s the thing, and honestly, most advisors won't tell you this directly enough: ₹25 lakh for a wedding *today* is one thing, but ₹25 lakh for a wedding *10 years from now* is entirely another. The silent killer of financial goals? Inflation. Wedding costs, especially in India, seem to defy gravity, climbing year after year. Think about how much a decent wedding cost 10 years ago compared to now. Huge difference, right?

Let's do a quick reality check. If we conservatively estimate wedding inflation at, say, 6-7% annually (and sometimes it feels much higher for certain aspects like venues and catering!), then ₹25 lakh in today's money will need to be significantly more in 10 years. Imagine Priya and Rahul, a young couple in Bengaluru. They want to set aside ₹25 lakh for their daughter, Myra’s wedding. But if they only target ₹25 lakh, they’re in for a rude shock. At a modest 7% inflation rate, that ₹25 lakh goal in 10 years would actually need to be around **₹49.17 lakh**! Almost double. Yes, you read that right. So, when we talk about how much SIP to save ₹25 lakh for a child's wedding in 10 years, we first need to adjust that ₹25 lakh to its future value.

My advice? Always inflate your financial goals to their future value. It's the most crucial, yet often overlooked, first step in planning. For our calculation today, let's target ₹49.17 lakh to ensure Myra's wedding truly feels like a ₹25 lakh wedding in today's terms.

Crunching the Numbers: Your Monthly SIP for the Big Day

Alright, now that we have a realistic target of approximately ₹49.17 lakh in 10 years, let's talk about the Systematic Investment Plan (SIP). This is where the magic of compounding in mutual funds really shines. For a 10-year horizon, equity mutual funds are generally your best bet for generating wealth that can outpace inflation. Over this kind of timeframe, you can realistically expect average annual returns in the range of 12-15% from well-chosen equity funds. While past performance is no guarantee, this has been a consistent observation for investors staying disciplined through market cycles, often reflected in the long-term returns of indices like the Nifty 50 or SENSEX.

Let's take a moderate expected return of 13% per annum. If Priya and Rahul need to accumulate ₹49.17 lakh in 10 years:

Using a good Goal SIP Calculator (which I highly recommend you play around with!), here’s roughly what the numbers look like:

• **Target Amount:** ₹49,17,000
• **Investment Horizon:** 10 years
• **Expected Annual Return:** 13%

To reach this goal, Priya and Rahul would need a monthly SIP of approximately **₹21,200**.

Is that number making your eyes widen a bit? It's a significant amount, no doubt. For a professional earning ₹65,000 a month, dedicating over ₹20,000 might feel like a stretch. This is where the next crucial strategy comes into play.

Picking the Right Funds: Where to Put Your Money (and Why)

So, you know your target, and you know the SIP amount. Now, where do you actually invest this money? For a 10-year goal like a child's wedding, you want growth, and that largely means equity-oriented mutual funds. But "equity funds" is a broad term, isn't it?

Here’s what I’ve seen work for busy professionals like Anita, a software engineer in Chennai, who doesn't have time to track markets daily:

1. **Flexi-Cap Funds:** These are fantastic because fund managers have the flexibility to invest across large-cap, mid-cap, and small-cap companies based on market opportunities. This dynamic allocation helps them capture growth while managing risk. They’re like having a professional angler who knows exactly where to cast the net for the best catch, regardless of the size of the fish.
2. **Large & Mid-Cap Funds:** If you prefer a bit more stability than pure mid-cap funds, but still want more growth potential than just large-caps, this category is a sweet spot. They offer a blend of established companies and high-growth potential firms.
3. **Balanced Advantage Funds (Dynamic Asset Allocation Funds):** These are great for someone who wants to participate in equity growth but also wants a built-in mechanism to manage market volatility. These funds dynamically shift between equity and debt based on market valuations. When equities are expensive, they reduce equity exposure; when cheap, they increase it. It’s a good option for those who are a little more risk-averse but still need growth for a long-term goal.

Before investing, always check the fund’s expense ratio, past performance (while not indicative of future returns, it gives a sense of consistency), and the fund manager's experience. You can easily find fund categories and their details on the AMFI India website, which is a treasure trove of information regulated by SEBI to ensure investor protection.

Remember, diversification is key. Don't put all your eggs in one basket. Spreading your SIP across 2-3 good funds from different categories (e.g., one flexi-cap, one large & mid-cap) can help balance risk and reward.

Don't Forget the Step-Up: Making Your SIP Work Harder

Remember that ₹21,200 SIP amount? For many, especially when starting young or with moderate salaries, that can feel like a big bite. This is where the 'Step-Up SIP' becomes your best friend. Honestly, this is one of the most powerful, yet underutilized, tools in mutual fund investing, especially for salaried professionals whose income grows over time.

What’s a Step-Up SIP? It's simply increasing your SIP amount by a fixed percentage or amount each year. As your salary grows (and hopefully, it does!), you allocate a portion of that raise to your SIP. For instance, if you get a 10-15% salary hike annually, you can commit to increasing your SIP by, say, 10% each year.

Let's look at Vikram, an IT professional in Hyderabad, who started his wedding planning for his daughter when she was born. Instead of starting with ₹21,200, he opted for a more manageable initial SIP of ₹12,000 per month. But he committed to stepping it up by 10% every year. Let’s see how that plays out over 10 years, assuming the same 13% annual return:

• **Year 1:** ₹12,000/month
• **Year 2:** ₹13,200/month (10% increase)
• **Year 3:** ₹14,520/month
• ...and so on.

With an annual 10% step-up, Vikram could potentially reach around ₹49.17 lakh or even more! This strategy eases the initial burden and leverages your increasing earning potential. You don't feel the pinch as much because the SIP hike aligns with your salary hike. Plus, the power of compounding works on larger amounts in later years, significantly accelerating your wealth creation.

You can try this out yourself with a SIP Step-Up Calculator to see how a smaller initial SIP, combined with consistent increases, can lead to substantial wealth.

What Most People Get Wrong When Planning for Big Goals

Over my years advising folks, I've seen some recurring patterns that derail even the best intentions:

1. **Ignoring Inflation:** We already covered this, but it’s the biggest culprit. Planning for a ₹25 lakh wedding in 10 years *as if it's today's cost* is a guaranteed way to fall short.
2. **Starting Too Late:** The earlier you start, the less you have to invest monthly, thanks to compounding. Delaying even by a couple of years can significantly increase your required SIP. Rahul from our earlier example, if he waits 2 years, will need to increase his SIP by a good 25-30% to hit the same goal!
3. **Not Stepping Up:** Many start a SIP but forget to increase it. Your income isn't stagnant, so your investments shouldn't be either. Aligning your SIP increases with your salary hikes is a no-brainer.
4. **Panicking During Market Volatility:** This is a classic. Markets will go up and down. That's their nature. When the market dips, some investors panic and stop their SIPs or withdraw funds. Honestly, that's often the *worst* thing to do for a long-term goal. These dips are when you get to buy more units at a lower price, which benefits you immensely when the market recovers. Stay disciplined!
5. **Chasing Returns:** Don't jump into "hot" funds based on short-term performance. Focus on fundamentally strong funds with a consistent track record and a clear investment philosophy.

FAQs About Saving for a Child's Wedding

Q1: Is ₹25 lakh enough for a child's wedding in 10 years?

As discussed, ₹25 lakh *today* will likely need to be closer to ₹45-50 lakh in 10 years due to inflation. Always calculate the future value of your goal amount to avoid nasty surprises.

Q2: What if I can't afford the calculated SIP right now?

Don't let a large initial number discourage you. Start with what you *can* comfortably afford, even if it's a smaller amount. The most important thing is to start! Then, commit to a Step-Up SIP, increasing your contribution by 5-10% annually with every salary hike.

Q3: Should I invest in debt funds for a wedding goal?

For a 10-year horizon, equity funds generally offer the best potential for wealth creation to beat inflation. However, as you get closer to your goal (say, 2-3 years out), it's wise to gradually shift a portion of your equity investments into safer debt funds or liquid funds. This de-risking strategy protects your accumulated corpus from sudden market downturns just before the big day.

Q4: Can I save ₹25 lakh (inflated value) in less than 10 years?

Yes, but it will require a significantly higher monthly SIP. For example, to reach ₹49.17 lakh in 7 years (instead of 10), with the same 13% return, you would need a monthly SIP of around ₹42,000. The shorter the time horizon, the more aggressive your SIP needs to be.

Q5: When should I start reducing my equity exposure for a wedding goal?

Generally, I advise clients to start de-risking their portfolio when they are about 2-3 years away from the goal. This means gradually moving money from equity funds to more stable debt funds or even ultra-short duration funds to protect your accumulated capital from market volatility.

Saving for your child's wedding is a beautiful goal, and with the right strategy, it's absolutely achievable. The key takeaways are simple: start early, account for inflation, pick suitable funds, and most importantly, use the power of a Step-Up SIP. Don't just dream about it; plan for it. You’ve got this!

Ready to see how much you need to save for *your* specific goals? Head over to a Goal SIP Calculator and start crunching those numbers. It’s an empowering first step.

Mutual fund investments are subject to market risks. Please read all scheme related documents carefully before investing. This article is for educational purposes only — not financial advice. Consult a SEBI-registered financial advisor for personalized guidance.