Whenever a daughter's wedding comes up, significant expenses loom large. Recently, on ET Now's "The Money Show," Rajesh Sahni, an NRI investor, spoke. Rajesh lives in Nigeria and is originally from Kanpur. He explained his goal is to accumulate ₹1 crore for his daughter's wedding. Furthermore, he will need more money in the future.

Rajesh Sahni has been investing regularly in India. He invests ₹90,000 monthly through SIPs in several mutual fund schemes. His portfolio includes HDFC Flexicap, HDFC Mid Cap, HDFC Multi Cap, Bandhan Small Cap, Kotak Contra, and two schemes from Motilal Oswal Mutual Fund. Now, Rajesh wants to increase his SIP by ₹30,000 per month. He wants to determine whether he should switch to a new scheme or distribute the additional money within his existing funds. His primary goal is to accumulate at least ₹1 crore for his daughter's wedding. Additionally, he wants to continue long-term investments, especially in the HDFC Midcap Fund, for his children, aged 17 and 14.

What did the expert advise?
Financial advisor and founder of Hercules Advisors, Aditya Shah, said that Rajesh should set his financial goals more clearly. According to the Economic Times, he said that he should have broader goals beyond his children's marriage, such as their education and retirement, which he should consider when investing in mutual funds.

The expert also pointed out that Rajesh's portfolio is spread across too many funds. This could lead to lower returns and make it difficult to monitor the funds. He advised consolidating and redistributing the money across four existing, sound funds instead of starting a new scheme.

Expert-Recommended SIP
Rs. 30,000 in HDFC Flexicap
Rs. 40,000 in Bandhan Small Cap
Rs. 30,000 in UTI Nifty Next 50 Index (This is a passive, index fund that will maintain a balance in large stocks)
Rs. 20,000 in HDFC Midcap
This brings the total SIP amount to Rs. 1.20 lakh. This change will streamline the portfolio and maintain the right balance between large, medium, and small stocks. It is ideal for an investment horizon of 8 to 10 years.

Continue SIP
For the long term, Shah advises Rajesh Sahni to continue SIPs until his goal deadline. When he is about three years away from needing the money for his daughter's wedding, he should gradually start reducing his investments in equities.

This gradual change will shift the portfolio from higher-risk equities to hybrid or debt funds. Two to three years before the goal, shifting from pure equities to a balanced advantage fund or a short-duration debt fund can help preserve earnings. Shifting completely to debt funds a year before the goal will provide liquidity and reduce volatility risk.

What's the expert's opinion?
Rajesh Sahni's portfolio reflects his strong savings capacity, discipline, and long-term vision. With a systematic SIP of Rs 1.2 lakh per month, a fund winding plan, and a gradual exit strategy, he can confidently achieve his goal of Rs 1 crore for his daughter, while also continuing to build wealth for his children and other future goals.

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