What is an Emergency Fund? How much is sufficient?
Life is full of unpleasant surprises, like a job loss, a medical emergency, or a natural calamity affecting you directly. These are the events that you cannot anticipate, and for which you might need a backup at any time. A sudden loss of income or large unforeseen expense can have a devastating impact on anyone.
is a sum of money safeguarded in case of a financial emergency such as illness or job loss. Most financial experts recommend that individuals or families have access to between three and six months of expenses kept in a cash-equivalent account.
An Emergency Fund is a source of funds for life's unplanned events. It should be easily accessible. It should be easily converted into cash, no matter what form it is stored in. And it should earn good returns while it is being saved. A good emergency fund acts like a safety net. It reduces the impact of such events in your day to day life drastically.
At Glide Invest, we recommend our investors to start their investing journey
by first building an emergency fund. You can setup an Emergency Fund through our Goals section. This goal comes with two benefits: it not only earns better returns than a savings account, but also can be converted back to cash (What is Insta Redemption?
) into your bank account within 30 minutes.
How much is sufficient? How much do you need?
It is recommended that you should have between 3 and 6 months of your household expenses to cover all your basic needs during unforeseen emergencies. However, this would completely depend on your lifestyle and your monthly requirements. Experts even suggest 8 - 12 months of expenses.
What is Insta Redemption? How do I avail this facility?
Mutual Fund withdrawals typically take up to 2-3 working days to credit the amount back to your bank account. Insta-redemption is a facility by which you can withdraw upto Rs. 50,000 or 90% of your invested balance (whichever is lower), within 30 ...
What are Absolute Returns, CAGR and XIRR?
Absolute Returns (or Total Returns): it is the gain or loss you’ve made on your investment over any given period of time. Investors should not be looking at the absolute returns when investing in Mutual funds. Absolute Returns = (Final Value – ...
Why are we switching from Bharat Bond FOF to Motilal Oswal 5yr GSec FOF in our goal-based portfolios?
From March 2022, we will be replacing the Bharat Bond FOF mutual fund in our portfolios with the Motilal Oswal 5yr GSec FOF mutual fund. From the perspective of goal based investing, the key reasons for the switch are as follows: Fund ceases to exist ...
Can I create my own goals?
Glide Invest allows the you to create custom goals with a custom target value or customer SIP amount. Based on your risk profile, we shall recommend suitable funds to enable you to reach that goal. At this point, we do not allow creation of custom ...
Can you advise me on which funds to buy?
Based on popular demand from our experienced customers, we now have fund recommendations on our app, available in various buckets. These are ideal for our DIY (Do-It-Yourself) investors who know what they want and have requested us to make it easy ...