Watch this YouTube video on the importance of an emergency fund explained by Mr. Arun Sundaresan, Co-fund Manager & Head-Product Management at Nippon India Mutual Fund.
Summary – Importance of Emergency Fund
- During this pandemic, one most important things we have realized is that everyone should have is an emergency fund.
- Emergency fund is an amount needed for unforeseen expenses. Regardless of the fact that one has insurance.
- In case of an emergency, one should have money to fall back on.
- Money should be available whenever needed, so it should be invested in highly liquid assets.
- At least 3 months of your household expenses can be parked in liquid money market funds.
- Nippon provides a feature called anytime money card. This card works as your bank debit card. Can be used anywhere. Like a bank account you have your Mutual fund account.