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WobblyBiscuit
WobblyBiscuit
8mo
by
Swiggy

Suggestion on emergency fund

M (37) want to invest 20L lump sum in emergency fund. Top criteria are immediate liquidity (at-least for a part of fund), 12% annual return and very low risk. How do you suggest I go about it?

8mo ago
WobblyCupcake
WobblyCupcake
Stealth
8mo

Man, 12% is like top returns for passive investments. Lower you expectations I guess?

WobblyBiscuit
WobblyBiscuit
Swiggy
8mo

Yeah, i was being ambitious I guess, what is a good return to look at? And still what would you suggest to goal-seek to that

SquishyWalrus
SquishyWalrus
Stealth
8mo

A side question, do you have a health insurance policy? For parents/fam?

WobblyBiscuit
WobblyBiscuit
Swiggy
8mo

Yeah, health and term life are sorted

PrancingPenguin
PrancingPenguin
Capgemini
8mo

Increase your pf contributions to max level, and use that amt from this money and buy gold of remaining

WobblyBiscuit
WobblyBiscuit
Swiggy
8mo

PF is maxed out. Alongside NPS and other retrials, this will then breach 7.5 lacs per year tax exemption on retirals

MagicalLlama
MagicalLlama
Salesforce
8mo

If you're looking for 12% return, you will need to look into equity, which offers considerable risk. For emergency fund, you should choose an instrument devoid of risk, for that the best instruments would be FDs or liquid MFs which can give around 5-7% returns. Suggest you to lower you're expectations on returns.

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