Best Options for Creating Emergency fund in India
Emergency funds are very important part of your portfolio. First lets know about what is emergency fund.
We all know about emergency as the word is emergency fund is same. The fund we need in emergency situation. There are situation comes in our life where we need the urgent cash to meet our important needs. We typically use savings at home, gold and borrow money from friends etc.
For tackling the same issue we should prepare ourselves from our early life. The basic question we should keep in mind when creating emergency funds "How much emergency fund need to create".
The most preferable answer to this question is to create the reserve of your six to eight month of expenses. Yes one more thing if your portfolio income is higher than your monthly expenses than you can avoid the creation of emergency fund.
The most important thing in creating emergency fund is not the return but the ease of access. You should access your money whenever you want.
Here are the best options for creating emergency funds:-
1. Saving Bank Accounts.
Saving Bank Account don't offers great returns on investment but it offers the easy accessibility of funds that we need in urgency. We should part atleast 25% to 30% of our emergency fund amount in these accounts.
2. Liquid Mutual Funds.
These are the latest trending option for creating emergency fund. Most of the liquid mutual funds offer 24*7 redemption options of 90% of our amount at any time. We can start investing with the 100 Rs. also. So this is one of the great option with safe and good amount of returns.
3. Fixed Deposit with auto sweep facility.
Nowadays banks offers so many saving products which are beneficial for everyone. This product is the same example. This is not like all the FD available in the market. This FD is creating by bank when our balance reach some pre fixed balance.
So if you already have emergency fund in your portfolio than consider these option and if not than I will suggest to create right now.
Read the disclaimer page also..
#rideonfinance
We all know about emergency as the word is emergency fund is same. The fund we need in emergency situation. There are situation comes in our life where we need the urgent cash to meet our important needs. We typically use savings at home, gold and borrow money from friends etc.
For tackling the same issue we should prepare ourselves from our early life. The basic question we should keep in mind when creating emergency funds "How much emergency fund need to create".
The most preferable answer to this question is to create the reserve of your six to eight month of expenses. Yes one more thing if your portfolio income is higher than your monthly expenses than you can avoid the creation of emergency fund.
The most important thing in creating emergency fund is not the return but the ease of access. You should access your money whenever you want.
Here are the best options for creating emergency funds:-
1. Saving Bank Accounts.
Saving Bank Account don't offers great returns on investment but it offers the easy accessibility of funds that we need in urgency. We should part atleast 25% to 30% of our emergency fund amount in these accounts.
2. Liquid Mutual Funds.
These are the latest trending option for creating emergency fund. Most of the liquid mutual funds offer 24*7 redemption options of 90% of our amount at any time. We can start investing with the 100 Rs. also. So this is one of the great option with safe and good amount of returns.
3. Fixed Deposit with auto sweep facility.
Nowadays banks offers so many saving products which are beneficial for everyone. This product is the same example. This is not like all the FD available in the market. This FD is creating by bank when our balance reach some pre fixed balance.
So if you already have emergency fund in your portfolio than consider these option and if not than I will suggest to create right now.
Read the disclaimer page also..
#rideonfinance
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