Emergency Fund: With an ATM card, it is very easy to withdraw cash. Similarly, withdrawing money from liquid funds is also easy.
Emergency Fund: Wise people often recommend an emergency fund. We have also understood how important it has become to have such funds in the Corona period.
Many people keep the funds in such a place, which becomes difficult to withdraw immediately. In such a situation, we should also know how it can be easily removed.
Keep emergency fund in different assets
Certified Financial Planner Sameer Shah explains that “Emergency funds should be invested in such a place, from where the money in your account is returned in just a few hours”. By keeping the emergency fund in different assets, you can take advantage of instant withdrawal along with returns.
Where to invest for emergency fund:
Shah says that it is important to have an emergency fund of such amount, so that it can meet your basic needs of at least six months.
You can keep savings bank account and bank FD, RD and some money at home. Liquid funds are also a great option. Suppose, you want to keep an emergency fund of Rs 5 lakh, then keep Rs 50,000 as cash at your house.
Keep 1 lakh rupees in savings account. Bank FD of Rs 1.5-2 lakh can be done and the rest can be kept in liquid funds.
How easily we get our money back:
If you have an ATM card, then withdrawing cash is very easy. Similarly, withdrawing money from liquid funds is also easy. Many liquid funds allow withdrawals up to Rs 50,000 or up to 90% of the invested amount.
You can withdraw your investments from such funds at any time, for which a redemption request has to be made on the mutual fund portal by quoting the folio number within any specified cut-off time.
As soon as this request is received, the money gets deposited immediately in the bank account you have linked. Some fund houses also provide ATM facility for withdrawal from liquid funds.
If you have got FD done in the bank, then you can apply from the mobile app or website of many banks. You can also apply by visiting the bank branch.
If you break the FD before the stipulated time, then you get the FD back after paying some penalty as per the rules of the bank.
Redemption from Liquid Funds:
If you are planning to put money in liquid funds, then go through their redemption rules and make sure that the amount the fund house allows you to withdraw.
Give all the information to the spouse:
Remember, it is not advisable to use a credit card for cash, as it attracts a higher rate of interest. Your spouse or your caregiver should know about where you have kept the emergency fund.
