SIP for travel: Planning Europe trip? Here’s how you can create foreign trip portfolio | EXPLAINED

SIP for travel: According to a report by India Holiday Report by Thomas Cook India and SOTC Travel, 2025. Based on inputs from 2,500 respondents across digital platforms, 85 per cent of them are planning to increase the number of holidays from an average of two per year to four to six trips annually, and the duration by an additional five to 10 days. Considering this, let's get into the story to find out how one can create a foreign trip portfolio.

Travelling is no longer a someday thing. It’s a must-have. It’s a way of life. But while we dream of mountains, beaches, and impromptu vacations, our accounts often bring us back down to earth.

What if your vacations didn’t have to wait on bonuses, credit cards, or last-minute budgeting?

That’s where a SIP (Systematic Investment Plan) comes in. Just like you save for your retirement, your dream home, or your wealth creation goals, you can save for your vacations too. On this note, let’s understand how you can create a foreign trip portfolio if you are planning a trip to Europe.

SIP for travel: Which mutual funds suit your travel SIP?

Investment Horizon & Funds

Less than a year --- Liquid Fund, Ultra Short Term Debt Fund

More than 3 Years --- Equity Savings Funds, Multi-Asset Funds, Conservative Hybrid Funds

SIP for travel: How does it work?

Say, for example, you intend to go for an International Trip to Europe in March 2027 with an estimated cost for 2 ranging between Rs 3.5 and Rs 4.0 lakh. If you started saving for this trip around a year ago and started an SIP of Rs 30,000, how much could you accumulate?

Here are 2 Debt funds in short duration with the highest returns in 1 year.

In 1 year, the Bank of India Large cap fund has given a 21.96 per cent annualised return. Its net asset value (NAV) is Rs 18 as of February 24, 2026.

With a monthly SIP of 30,000 and a total investment of 3,60,000, the estimated total corpus in 1 year could be Rs 4,05,831.

In 1 year, the Groww large cap fund has given an 18.81 per cent annualised return. Its net asset value (NAV) is Rs 53 as of February 24, 2026.

With a monthly SIP of 30,000 and a total investment of 3,60,000, the estimated total corpus in 1 year could be Rs 3,98,873.

Corporate bond debt funds

For an investment horizon of 12 months to 3 years, here are the details of 2 Corporate bond debt funds with the highest returns in 3 years.

Franklin India corporate debt fund

In 3 years, the Franklin India corporate debt fund has given an 8.33 per cent annualised return. Its net asset value (NAV) is Rs 113 as of February 24, 2026.

With a monthly SIP of 30,000 and a total investment of 3,60,000, the estimated total corpus in 1 year could be Rs 4,10,207.

In 3 years, the Axis corporate bond fund has given an 8.21 per cent annualised return. Its net asset value (NAV) is Rs 19 as of February 24, 2026.

With a monthly SIP of 10,000 and a total investment of 3,60,000, the estimated total corpus in 1 year could be Rs 4,09,424.

Also, take inflation into account by adding a 10-15 per cent buffer, especially for trips that are several years away, to make sure your savings will cover future costs. Keeping this in mind, you can calculate how much you need to invest today to build a sufficient corpus for your future travels.

These are just examples of how one can build a corpus for travelling without feeling the pressure to arrange for money overnight. Rest, you can visit the ET Now Digital website for mutual fund recommendation stories by the expert.

(Source of funds: AMFI data)

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)