Suppose that you are the sole breadwinner of the family and suddenly you lose your job and you have bills, EMI’s, and other installments to pay. Somehow you manage for a month and suddenly one of your family members meets with an accident. In this haphazard condition helpless and money less not knowing what to do and how to arrange needed finance. I am sure nobody wants to be in this situation. Strong finance somehow gives you great strength to fight such problems in life. And life is life conditions are good and bad both time to time you just need to be prepared for the bad time and thus you need to be prepared with savings and emergency funds.

What is the emergency fund?

Problems in life are inevitable and as they occur, we are left with no option other than facing it, getting through it, and solving it. These problems come with a price that you are forced to pay. And for those with minimal and no savings its red alert. For these moments of life, you need to be prepared and prepare an emergency fund or rather say have some savings.

Why emergency funds?

  • Having an emergency fund can save you from getting into debt in times of crisis.
  • If you only have one source of income, it is essential to have a substantial emergency fund. This can help you get through an unexpected job loss or illness that keeps the primary breadwinner from working.
  • If you are self-employed, an independent contractor you may want to plan extra savings for months when business is slow, or you get some unexpected loss in your business.
  • If you own a house or car in case of damage you will need to get it repaired that time too you need to have some emergency funds ready with you.
  • In case you have a medical condition or someone else in your family has any medical condition, in any case, being a breadwinner of the family, you need to be prepared for any such emergencies.

Always take your emergency funds as insurance against unexpected time and expenses. Also, creating emergency funds is a part of the investment.

Things to be considered before investing in emergency funds – 

  • A most important part of having an emergency fund is liquidity and safety. In hours of need, one must b able to convert their investments into cash immediately. If that is not the case, there is no point in having an emergency fund. Some of the top choices for such situations are – 
    • Savings Accounts
    • Liquid funds
    • Ultra- Short debt funds
  • Your emergency funds must cover at least three months of your expenses. In case you lose the job at least your regular expenses along with EMI’s and installments don’t get affected.


Most importantly, always consult a financial planner or advisor, before starting your investments. They will help you select the best fund, for your investments as per your requirement.

You can also contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.


Happy Investing!


(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee to future returns).