Best Emergency Mutual Fund | Innvest

An emergency Mutual fund is a fund that should assist you in carrying on with your life and meeting your necessary expenses without resorting to last-minute unplanned loans, overusing your credit card, or selling and mortgaging your existing assets. An emergency fund helps people deal with financial difficulties such as unexpected medical bills, major home or car repairs, job loss, and so on. An emergency mutual fund not only provides financial assistance during times of adversity, but it also keeps you on track with your long-term savings goals. Your emergency fund’s primary goal is to assist you as soon as possible when you are in need. While some emergencies may give you a few hours or days to prepare, others may require you to use funds right away. In such a case, you will have to manage not only your household expenses, but also your liabilities such as EMIs and credit card dues. As a result, one should at the very least accumulate an emergency mutual fund capable of covering 6-9 months of family expenses.

Keep in mind that a portion of your emergency mutual fund should be invested in financial products that provide good returns while remaining easily accessible.