I invest Rs 70K/month in equity SIPs but have weddings, home construction in 2 years — should I cut back?

I’m a 28-year-old salaried professional (Rs 1.4L/month in hand) and the primary earner in my family. I’ve built a Rs 26L mutual fund portfolio and ₹2L in gold/silver ETFs. I invest Rs 70,000/month in SIPs across 6 funds. Household expenses are Rs 20,000, and I usually keep the remaining Rs 50,000 liquid, investing lump sums whenever my balance exceeds Rs 3.5 lakh (no defined strategy yet).

Upcoming goals (2025–26):

Home construction (Rs15–20 lakh, loan planned)

My wedding (Rs 8–10 lakh)

Sister’s wedding (Rs 10–12 lakh)

I currently have Rs 2.5 lakh in savings and expect Rs 2 lakh repayment from a relative within 6 months.

Advice by Anooj Mehta, Vice President, Partner Success at 1 Finance

My questions:

Is Rs 70K/month in equity SIPs too aggressive given these short-term goals?

> Yes, Rs 70K/month in equity SIPs is aggressive, especially since you have significant short-term expenses approaching within the next 1.5–2 years, such as home construction and two weddings. Equity investments are ideal for long-term wealth creation (5+ years), but they can be volatile in shorter periods, which may affect your ability to fund these upcoming goals if the markets turn

> Recommendation: Shift a portion of your SIPs from equities to debt or liquid mutual funds to reduce risk for short-term needs. This makes your investments better aligned with your time horizon and helps safeguard your capital

What’s the best way to use the ₹50K monthly surplus more efficiently?

· First priority: Build your emergency fund to at least ₹3–4L. With ₹2.5L in savings and ₹2L expected back from a relative, you’re almost there

· Second priority: Start SIPs in liquid or ultra-short-term debt mutual funds specifically for your wedding goals. These funds offer stability and liquidity, which is ideal for money required in the next 1–2 years. You could also purchase physical gold/ETFs each month if it will be useful for the weddings

· Practical plan: Investing Rs 1L/month in liquid/debt mutual funds for 24 months can yield about Rs 24L plus 7%–8% pre-tax returns. Continuing with Rs 20K/month in equity is reasonable for long-term goals; concentrate on 1–2 diversified schemes, ideally passive index or flexi-cap funds and not more. Purchase physical gold/ETFs of Rs 20K/month if required. You will be left with Rs 10K/Month as surplus in savings

· Priority 4 is to increase equity investments and reduce debt investment once the wedding goal corpus is created

Where should I park funds needed in 1.5–2 years (weddings)?

· Park in liquid/ultra-short-term debt mutual funds, recurring or short-tenure bank deposits. These instruments combine safety with modest returns and offer easy access when you need them. Avoid equities for near-term goals to protect your corpus from sudden market downturns

· Physical gold/ETFs may also be considered if that is going to be required for the wedding

Should I reduce SIPs and build short-term funds, or continue investing and rely on loans?

· Reduce SIPs in equities and redirect them towards short-term needs. Once you achieve your immediate requirements, increase equity allocations for long-term compounding

· Funding strategy: For home construction, sell a portion of your mutual funds for the down payment, and consider a home loan for the remainder. For weddings, rely on short-term investments rather than loans wherever possible, since personal loans can be expensive

· Tax tip: Any capital gains you earn by selling mutual funds for home construction could potentially be offset under Section 54F of the Indian Income Tax Act if invested in a residential property

Please advise on balancing long-term wealth building with upcoming financial responsibilities.

Diversification and asset allocation + disciplined investing is the key to long term wealth building.

· With the above-mentioned strategy, you can comfortably achieve your wedding goals with a debt / liquid mutual fund

· Use existing portfolio + loan (good liability) for home construction

· Continue portion of investments in equity mutual funds for long-term wealth creation. Once your short-term goals are met, you can confidently accelerate your equity allocation

· Systematically invest surpluses instead of keeping them liquid without a plan.

 (Views expressed by the expert are his/her own. E-mail us your investment queries at askmoneytoday@intoday.com. We will get your queries answered by our panel of experts.)