Park Emergency Funds - MF App?

[falcon007]

Which app should one use to park Emergency Funds?

Like if I want to 1 lakh rs in Liquid Fund that has Instant Redemption Facility available, which app should I use?

Initially, I had a thought of investing directly through respective Mutual Fund's app. But then, tracking different funds is becomes hectic.

Also, then I had thought to use MF Central app but then this combines existing portfolio with Emergency Funds.

Any suggestions?

 

[6ix9ine]

I'm not sure what your definition of emergency funds is. In my opinion, they should be readily available without any penalty or waiting period. It's an emergency after all.

Savings Bank Account:

- Liquidity: Instant withdrawal, no issues whatsoever
- Risk: Zero risk. Your amount is safe.
- Returns: Low interest (typically 2-4% annually, depending on the bank).

Mutual Funds (e.g Short duration funds)

- Liquidity: Fairly liquid but may take 1-2 days for withdrawals, depending on the type of fund.
- Risk: It does has some low to moderate risk, since you are investing in market (although they are mostly consist of govt bonds/securities)
- Returns: Generally higher than a savings account (7%-10% annually for liquid funds), but returns are not guaranteed.

This is what I could think of off the top of my head. Choose wisely. Good luck.

 

[falcon007]

We always have option of using Credit Cards in case of utmost emergency.

However, Instant Redemption in Liquid Funds allows withdrawal within 30 minutes.

So, I was thinking to park an amount there and then rest in other instruments as required.

 

[VikasBhindwar]

I have parked to Eldelwesis Liquid Fund through Groww & can redeem instantly using Eldelwesis website.

 

[Vishal N]

Liquid fund instant redemption is max of 50k or 90% of investment.

Try kuvera, they split put 50k in each instant redemption fund, bringing total possible to 2-2.5L.

They call this feature save smart

 

[Lobogris]

We always have option of using Credit Cards in case of utmost emergency.

However, Instant Redemption in Liquid Funds allows withdrawal within 30 minutes.

So, I was thinking to park an amount there and then rest in other instruments as required.

Just place it in an FD (divide into chunks if needed) and get certain 8.5% with instant liquidity. Like you make 4 FDs of 25k each or 10 of 10k each. Whenever you need, day or night, click a button to liquidate and have it available. Emergency funds don't belong in stocks. What if the market corrects by 20% or more and you need the money?

 

[falcon007]

Just place it in an FD (divide into chunks if needed) and get certain 8.5% with instant liquidity. Like you make 4 FDs of 25k each or 10 of 10k each. Whenever you need, day or night, click a button to liquidate and have it available. Emergency funds don't belong in stocks. What if the market corrects by 20% or more and you need the money?

That's why Liquid Funds.

Even if market corrects by 20% then also Liquid Funds are very slightly affected. Not much volatile.

 

[falcon007]

Liquid fund instant redemption is max of 50k or 90% of investment.

Try kuvera, they split put 50k in each instant redemption fund, bringing total possible to 2-2.5L.

They call this feature save smart

SaveSmart seems to be a good option.

Any other alternative from any alternative app?

 

[350modena]

I keep my emergency fund in 2 liquid funds (50k each so 100k) and 2 funds in my spouse's name.

Withdrawal is instant (via imps) upto 50k a day so i have full access everyday.

 

[Vishal N]

SaveSmart seems to be a good option.

Any other alternative from any alternative app?

Paytm money also has it.

Kuvera is better. I'm using it from many years. UI is cluttered but it's good. No bugs or issues. Have tested instant redemption

Just a reminder that instant redemption is max of 50k or 90% of invested value.

 

[hiranmoy]

We always have option of using Credit Cards in case of utmost emergency.

However, Instant Redemption in Liquid Funds allows withdrawal within 30 minutes.

So, I was thinking to park an amount there and then rest in other instruments as required.

Second this.

MFs can be redeemed in 1-2 working days. For immediate payment requirements, use credit cards and redeem the MF prior to the bill payment date.
If you still feel that immediate cash should be available at all times, I would suggest keeping 20% of your emergency fund in savings account, which can be withdrawn anytime. Keep the remaining 80% in liquid MFs.

 

[fradela]

Which app should one use to park Emergency Funds?

Like if I want to 1 lakh rs in Liquid Fund that has Instant Redemption Facility available, which app should I use?

Initially, I had a thought of investing directly through respective Mutual Fund's app. But then, tracking different funds is becomes hectic.

Also, then I had thought to use MF Central app but then this combines existing portfolio with Emergency Funds.

Any suggestions?

Go with Kuvera app and webiste.

 

[falcon007]

Tried Kuvera app.

Issues I faced:
1. I had invested half of the Emergency Fund as a trial to check if everything goes smooth.
The amount was split into unequal portions to be invested in 4 different MFs. This was non editable and it was as per Kuvera's algorithm. Fine. No issues.
Next, when I tried investing the other half Fund, it gave me error that the earlier transaction is in progress. Tried raising the issue with the Kuvera Support. But, the issue is unresolved since last 2 weeks.

2. Tried redeeming the amount. Upto 90% of the SmartSave portfolio was eligible for quicker redemption i.e. less than 30 mins. Although I received within 1 minute. Very good.
However, I found that the investment made in Aditya Birla SL MF was redemeed instantly, the part of investment that was allocated to ICICI Prudential MF is giving technical issues while redeeming. I even tried with different amounts for withdrawal, it didn't work. I'll have to connect with Kuvera support to check on redemption.

Conclusion:
1. Don't keep entire Emergency Fund in one basket be it any (bank/MF/FD/etc.)
2. Better to segregate the funds in Bank FD + Instant Liquid Mutual Fund.

 

[fradela]

Emergency funds should be in Bank FD which can be premature any time.
Invest FD in multiple of 25K, up to 4L in one bank. You will have 16 FDs.
If any emergency arise, you would need 1L, just break 4 FDs enough.

Beyond 4L, just keep in Liquid Mutual Funds which can redeem maximum one day.

Don't keep emergency fund in Savings Account.
Don't keep any funds in Savings Account. No safety and no returns.

 

[fradela]

Have written article about Equity Mutual Funds.

Thread 'Building a Solid Equity Mutual Fund Portfolio'

Oct 20, 2024

Building a Solid Equity Mutual Fund Portfolio​

When it comes to investing, I firmly believe in the power of mutual funds.
They offer a practical way to grow wealth with minimal hassle, especially for those who prefer a structured, hands-off approach.

Every month, on the day my salary gets credited, I invest consistently. Here’s my approach:

• Stick to Index Funds (Passive): I only invest in passive funds, as they are low-cost and transparent.
• Direct and Growth Funds Only: This ensures that I avoid commission fees and focus on long-term capital appreciation...

• fradela
• best stocks etf portfolio invest right app account investing investment kuvera mutual funds stock market
• Replies: 24
• Forum: Mutual Fund

• 
• 
• 

 

[falcon007]

Have written article about Equity Mutual Funds.

Thread 'Building a Solid Equity Mutual Fund Portfolio'

Oct 20, 2024

Building a Solid Equity Mutual Fund Portfolio​

When it comes to investing, I firmly believe in the power of mutual funds.
They offer a practical way to grow wealth with minimal hassle, especially for those who prefer a structured, hands-off approach.

Every month, on the day my salary gets credited, I invest consistently. Here’s my approach:

• Stick to Index Funds (Passive): I only invest in passive funds, as they are low-cost and transparent.
• Direct and Growth Funds Only: This ensures that I avoid commission fees and focus on long-term capital appreciation...

• fradela
• best stocks etf portfolio invest right app account investing investment kuvera mutual funds stock market
• Replies: 24
• Forum: Mutual Fund

• 
• 
• 

How is this related to Emergency Funds?