Planning your child’s wedding? This ₹12,000 monthly SIP strategy can build you a ₹50 lakh corpus
The financial expert illustrated the idea with a practical scenario. Imagine a child who is five years old today and will turn 25 in two decades — the typical age by which many families begin planning weddings.
- Oct 3, 2025,
- Updated Oct 3, 2025 9:50 PM IST
Weddings in India are often grand, emotionally significant, and financially demanding. For parents, one of the biggest long-term goals is ensuring enough savings to fund their child’s big day. But how exactly can families plan ahead without burdening themselves financially?
Chartered Accountant (CA) Nitin Kaushik recently shared a detailed strategy on X (formerly Twitter), demonstrating how disciplined investing through a step-up Systematic Investment Plan (SIP) can help parents accumulate a corpus of ₹50 lakh over 20 years.
Setting the goal
Kaushik illustrated the idea with a practical scenario. Imagine a child who is five years old today and will turn 25 in two decades — the typical age by which many families begin planning weddings. If the aim is to set aside enough money to cover wedding expenses, adjusted for inflation, the target amount would be around ₹50 lakh.
Investment roadmap
To reach that goal, Kaushik recommended a structured SIP approach. He suggested starting with a monthly contribution of ₹12,000 and then gradually increasing this amount by 10 percent each year. This increase, often referred to as a step-up SIP, ensures that the investment grows in line with rising income levels and inflationary pressures. Over time, the compounding effect becomes powerful.
For example, the monthly SIP of ₹12,000 in the first year would rise to ₹13,200 in the second year, and then to ₹14,520 in the third year. By continuing this pattern of annual increments and assuming an average annual return of about 12 percent from equity-based investments, parents could realistically accumulate close to ₹50 lakh in two decades — enough to fund a wedding without undue financial stress.
Why step-up SIPs matter
Kaushik highlighted that this method works because it not only combats inflation but also aligns naturally with the way incomes typically grow over time. As families earn more, their ability to contribute slightly higher amounts increases, making the journey to a large financial goal far less daunting.
A broader message
While Kaushik used the example of a wedding, his advice carries broader relevance. “Early planning is the secret sauce to financial freedom,” he noted, stressing that the same principle applies when saving for children’s education or preparing for retirement.
At the same time, he issued a word of caution, clarifying that his example was for educational purposes only. “This is not investment advice. Always consult a financial advisor before making decisions,” Kaushik added.
Weddings in India are often grand, emotionally significant, and financially demanding. For parents, one of the biggest long-term goals is ensuring enough savings to fund their child’s big day. But how exactly can families plan ahead without burdening themselves financially?
Chartered Accountant (CA) Nitin Kaushik recently shared a detailed strategy on X (formerly Twitter), demonstrating how disciplined investing through a step-up Systematic Investment Plan (SIP) can help parents accumulate a corpus of ₹50 lakh over 20 years.
Setting the goal
Kaushik illustrated the idea with a practical scenario. Imagine a child who is five years old today and will turn 25 in two decades — the typical age by which many families begin planning weddings. If the aim is to set aside enough money to cover wedding expenses, adjusted for inflation, the target amount would be around ₹50 lakh.
Investment roadmap
To reach that goal, Kaushik recommended a structured SIP approach. He suggested starting with a monthly contribution of ₹12,000 and then gradually increasing this amount by 10 percent each year. This increase, often referred to as a step-up SIP, ensures that the investment grows in line with rising income levels and inflationary pressures. Over time, the compounding effect becomes powerful.
For example, the monthly SIP of ₹12,000 in the first year would rise to ₹13,200 in the second year, and then to ₹14,520 in the third year. By continuing this pattern of annual increments and assuming an average annual return of about 12 percent from equity-based investments, parents could realistically accumulate close to ₹50 lakh in two decades — enough to fund a wedding without undue financial stress.
Why step-up SIPs matter
Kaushik highlighted that this method works because it not only combats inflation but also aligns naturally with the way incomes typically grow over time. As families earn more, their ability to contribute slightly higher amounts increases, making the journey to a large financial goal far less daunting.
A broader message
While Kaushik used the example of a wedding, his advice carries broader relevance. “Early planning is the secret sauce to financial freedom,” he noted, stressing that the same principle applies when saving for children’s education or preparing for retirement.
At the same time, he issued a word of caution, clarifying that his example was for educational purposes only. “This is not investment advice. Always consult a financial advisor before making decisions,” Kaushik added.