5 Mutual Fund Ideas for Newly Married Couples in 2024

Starting a new chapter in life as a married couple is exciting. As you brace up for a new phase of your life, financial planning is crucial to build a secure future together. One way to start the journey to your financial freedom is via mutual funds.

Amid growing inflation, it’s essential to create a Systematic Investment Plan (SIP) in mutual funds to remain financially resilient in the years to come. In this article, we have shared 5 valuable mutual fund ideas that can prove invaluable for married couples.

Benefits of Starting Early with Mutual Funds for Newly Weds

The earlier couples invest in mutual funds, the more they can reap the benefits of compounding. Over time, investments can grow exponentially, which makes it a crucial aspect of wealth creation.

Starting early with your mutual fund investments can also help you ride out volatility in the market. This gives adequate time for your investments to recover and grow.

Once you set your financial goals, use an SIP calculator and check out the overall corpus you and your partner can grow over the next few decades. Make sure to consider goals like your kids’ education, purchasing a house, and saving for your retirement.

Mutual Fund Portfolio Ideas for Newly Married Couples

Each of these fund types has a specific role in balancing the overall assets and helping build wealth over time. (NAVs are updated as on 19th August 2024.)

1. Start With Balanced or Hybrid Funds

For newly married couples, balanced or hybrid funds serve as an excellent starting point. These funds invest in a mix of equity and debt instruments, strategically balancing risk and returns. While the equity portion offers growth potential, the debt component ensures stability. With this mix, couples can take advantage of the growth trajectory without exposing themselves to excessive risk.

Balanced funds offer stable growth at a moderate risk to couples. You get a cushion during market downturns, which makes them a reliable option for long-term financial planning.

2. Save Tax With Equity Linked Savings Scheme (ELSS)

Couples looking to build wealth while saving tax must start investing in ELSS (Equity Linked Savings Scheme) funds. Primarily, these funds invest in equities and come with a lock-in period of 3 years.

Thus, you get the dual benefit of tax deductions under Section 80C of the Income Tax Act and the potential for significant capital appreciation.

3. Create an SIP in Large-Cap Funds

Now that you have already started with mutual fund investments as a couple, it’s time to diversify and stabilise your portfolio. Start an SIP in large-cap funds. This is a suitable strategy for couples who prefer consistent and disciplined investing.

Large-cap funds invest in well-established companies with a demonstrated track record of consistent performance. For newly married couples, SIPs in large-cap funds provide stability and growth, making them an ideal choice for long-term financial planning like retirement.

4. Stabilise Your Portfolio With Index Funds

Index funds are a type of mutual fund that replicates the performance of a specific market index like the Nifty 50, Nifty Next 50, or BSE Sensex. These funds follow a passive investment strategy. As they have less active management, the expense ratios are lower for these funds.

As a couple, if you are looking for a hassle-free approach to investing without putting in much effort to research, index funds are for you. The simplicity and efficiency of index funds make them an attractive option for busy couples.

5. Secure Your Portfolio With Debt Funds

Debt funds invest in fixed-income securities. These include money market instruments, government bonds, and corporate bonds. These funds can stabilise your mutual fund portfolio as they offer lower risk and consistent returns.

For conservative investors, debt funds are an excellent option to explore. Debt funds provide financial stability and safety for newly married couples, particularly when the market remains uncertain.

Conclusion

A strategic approach to balancing your portfolio with the right mutual funds defines long-term financial stability for couples. With this mix of investments, couples can benefit from the growth potential of index and large-cap funds while enjoying the stability of hybrid and debt funds.
ELSS funds, on the other hand, help you keep more of your income, reducing tax liabilities while offering capital appreciation.

Happy Investing!

Disclaimer: The stocks, policies, and companies mentioned above are not recommendations from Finology Insider and should not be considered a substitute for professional advice. We strongly recommend consulting a financial professional or conducting thorough research before making any investment decisions.