It’s vacation time and surely many of you have planned your vacation well in advance. The biggest advantage of planning in advance is the discounts available on travel, hotels and other packages. But, many a times you wish to go for that dream destination after seeing the cool pictures posted by your friends on social media from exotic locales or your children suggesting newer destinations after hearing the vacation plans of their friends in school. The biggest constraint to achieve this is Affordability!

These dream destinations do not come cheap and hence are mostly an exception than a norm. These exceptions could be special events in your life where you need to make the occasion memorable and celebrate with your close family. Are dream vacations possible? Yes, provided you save for this special goal with regularity and consistency through Systematic Investment Plans or SIPs in mutual funds. They can help you realise your dream vacation.

Let us assume your dream vacation costs you around Rs.1 lakh per head. So for a family of four this would mean setting aside Rs.4 lakh. If you plan this vacation after 5 years, you need to accumulate Rs.5 lakhs (assuming an inflation rate @ 5% p.a.). These are the approximate SIP amounts you need to set aside every month to reach your special goal –

*Mutual funds do not provide assured returns. Please speak to your financial advisor for an appropriate mutual fund portfolio.

As you can see, what seemed nearly impossible till yesterday seems closer and reachable! So whether it is a European destination like Paris or Switzerland or an adventure safari in Masai Mara Africa or the Pyramids in Egypt, the way to do it in a planned manner is through SIPs.

Information contained in this article is not a complete representation of every material fact and is for informational purposes only. The recipient is advised to consult its advisor/ tax consultant prior to arriving at any investment decision.