Short term goal
Travel and vacation planning.
Short horizon and entirely discretionary — the case for keeping it conservative, and for paying for the trip before you take it rather than after.
Who this is for
If a family holiday or an overseas trip is one to three years away.
Travel is the goal most often paid for on a credit card or with a personal loan, which means the holiday is still being paid for long after the photographs are taken.
Because the date is close and the goal is optional, there is no reason to take equity risk with it. A monthly amount in a debt or conservative hybrid fund does the work, and the trip is paid for in full before you book.
“Book the trip when the money is ready, not the other way round.”
What each trip takes
Three trips, funded monthly.
Costs rise at an assumed 6% a year to the travel date. The assumed return reflects a conservative, debt-weighted portfolio.
Monthly SIP for the ₹9.5 lakh Europe trip
Plan early, travel lighter
- 3 years ahead₹23,300/mo
- 2 years ahead₹37,100/mo
- 1 year ahead₹76,600/mo
3.3×more each month if you plan 1 year ahead instead of 3
| Trip | Cost today | When | Cost then | Monthly SIP needed |
|---|---|---|---|---|
| Domestic family holiday | ₹1,50,000 | In 1 year | ₹1,59,000 | ₹12,800 |
| South-East Asia for four | ₹3,00,000 | In 2 years | ₹3,37,100 | ₹13,100 |
| Europe for a family of four | ₹8,00,000 | In 3 years | ₹9,52,800 | ₹23,300 |
Illustrative projections at an assumed 6.5% annualised return for one- and two-year plans and 8% for three years, compounded monthly. Overseas costs also move with the exchange rate. Actual returns vary and may be negative in any period. Figures rounded. Not a guarantee, and not a recommendation of any specific scheme.
How we work
Four steps, then a review every year.
- 1
Price the whole trip
Flights, stays, visas, travel insurance, local transport and the shopping you will do anyway.
- 2
Choose the date, then the amount
The travel month sets the horizon; the horizon and the cost set the monthly SIP.
- 3
Keep it low-risk
Debt or conservative hybrid funds only. A holiday is easy to postpone and hard to shrink.
- 4
Pay in full and travel insured
Redeem before you book, and buy travel insurance when you do — for many international visas it is a requirement.
Questions we get
Before you start.
Why not equity for a three-year goal?
What about foreign currency?
Can this money be used for something else?
Other goals
Planning for more than one thing?
Retirement
Your longest goal. Most people start ten years late.
Plan this goal Long termChild’s education
A fixed date you cannot move.
Plan this goal Long termChild’s marriage
A long horizon with a flexible date.
Plan this goal Medium termDream home
Usually three to seven years away.
Plan this goal Medium termTax saving
ELSS chosen on merit, not on the March deadline.
Plan this goal Short termEmergency fund
Six months of expenses, ready the same day.
Plan this goal Short termYearly expenses
Fees, premiums and festivals that come every year.
Plan this goal Medium termSelf development
Courses or a career change, planned on purpose.
Plan this goalPlan your dream vacation with us.
A free 30-minute call. We look at what you already have and work out what the goal really needs.
We never hold your money. Payments go straight to the fund house.
Mutual fund investments are subject to market risks. Read all scheme related documents carefully. Projections are illustrations at an assumed rate, not guaranteed returns.