4 Reasons Why Liquid Funds Help You During Emergencies
1189
Liquid mutual funds invest your money in short-term debt and money market investments. As a result, they can be by your side when you have some imminent expenses or you need to meet emergencies. Here’s how you can get the best out of them
Take advantage of their liquidity and safety Liquid funds provide what you need for investments earmarked for emergencies—safety, liquidity and stable returns.
Earmark adequate investments Usually, 3-6 months of household expenses should be adequate. However, you can increase the amount with age and addition of family members.
Use SIPs Make regular investments using systematic investment plan (SIP) to build the emergency fund.
Go for a tax efficient option If you are in a lower tax slabs, go for the growth option. Else, choose dividend re-investment option.
We hope you found this useful. For more, download our mobile app, visit our website www.fundoomoney.com and subscribe to our YouTube channel and digital magazine FundooMoney Indian, available on leading digital newsstands. Also, follow us on Instagram, Pinterest and Slideshare.
