4 Safe Places to Keep your EMERGENCY FUND

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An emergency fund or contingency fund, is a personal budget set aside as a financial safety net for future mishaps or unexpected expenses. It must ideally be kept in a safe place and should not be invested in risky instruments such as stocks or bitcoin.

A few examples of emergencies are:
Unforeseen repair work at home or office
Uninsured illness needing costly medication or a minor surgery
Flash floods damaging household items
Theft or burglary at home or during a journey
Unexpected family travels
Vehicle breakdown at home or during a journey
A medical or family conditions requiring a long break from work
A prolonged period of job loss
A chronic uninsured illness needing a big amount
Damage to house in a natural calamity

Where can you invest it?
Savings Account
Sweep-in FDs
Liquid Fund or other short-term debt funds
Arbitrage Funds

In this video, all the 4 options have been discussed based on Safety, Liquidity, Returns & Taxation.

While selecting the instrument, safety and liquidity are top most priorities and taxation, risk are also some other factors that need to be considered.

If you want to check out any particular areas of the video, feel free to forward to the below time-stamps.
00:00 - Introduction
00:45 - What are Emergency Funds?
01:36 - How much money should you keep as Emergency Funds?
02:15 - Option 1 : Bank Savings Account
02:50 - Option 2 : Sweep-in FDs
03:59 - Option 3 : Liquid Funds
05:37 - Option 4 : Arbitrage Funds

Content Creator: Aditi Khandelwal

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