A wedding that costs ₹20 lakh today will cost roughly ₹32 lakh in 7 years if wedding costs rise about 7% a year. To build that, you would need a SIP of roughly ₹24,000–₹30,000 a month, depending on the return you assume.
General inflation is assumed at around 6%. Wedding costs usually run higher because venues, catering, jewellery and décor all rise faster than the average basket. A planning assumption of about 7% a year is reasonable, though your own city and guest list matter more than any average.
| Annual wedding-cost inflation | ₹20 lakh today becomes (7 years) |
|---|---|
| 6% | ~₹30.1 lakh |
| 7% | ~₹32.1 lakh |
| 8% | ~₹34.3 lakh |
| 10% | ~₹39.0 lakh |
The gap between 6% and 10% is almost ₹9 lakh. That is why the inflation assumption deserves as much thought as the budget itself.
Here is the SIP needed to reach roughly ₹32 lakh in 84 months, for different assumed returns. These are assumptions, not promises.
| Assumed return (p.a.) | Monthly SIP |
|---|---|
| 7% (debt-like) | ~₹29,500 |
| 10% (blended) | ~₹26,300 |
| 12% (equity-like) | ~₹24,300 |
A 7-year goal sits in a middle zone. It is long enough for some equity, but short enough that a bad market near the wedding date would hurt. This is why the asset mix should change over time.
This de-risking is often called a glide path. Weddings also have fixed dates and big advance payments, so you cannot wait for the market to recover.
If you are planning several goals at once, a structured plan helps you see how the wedding SIP competes with other goals, and our 6-step goal plan does this in one place.
Q. What inflation rate should I assume for wedding costs?
A. Around 7% a year is a sensible planning assumption, versus about 6% for general inflation. Check actual quotes from vendors in your city, since local prices can differ a lot.
Q. Should I take a loan for the wedding instead?
A. A personal loan usually costs much more than a fixed-income return, so saving ahead is generally cheaper. If a loan is unavoidable, keep it small and check the full interest cost first.
Q. Can I put all the wedding money into equity?
A. For a 7-year goal, a high equity share early on can be reasonable, but equity can fall sharply in the final years. Shifting towards debt as the date nears protects the amount you need.
Q. What if the wedding is only 2 years away?
A. Then the SIP needed is much higher and the money is better held in low-risk debt, since there is little time to recover from a market fall.
Plan Our Future · AMFI-registered Mutual Fund Distributor (ARN-360754). Mutual Fund investments are subject to market risks, read all scheme related documents carefully.