Latest News
-
Gold Price In US: Yellow Metal Rates Hold Steady Amidst Easing Middle East Tensions; GDP Data Awaited -
Multibagger Energy Stock To Reward Shareholders With 3 Bonus Shares, Hits 52-Week High -
Massive Rs 33/Sh Dividend By Larsen's IT Stock, 1650% Payout Soon; LTTS Earns Profit Of Rs 341 Crore In Q4 -
Rs 7.50/Share Dividend: Adani Group Cement Company Reports Strong Q4 Results; Profit Surges 2x YoY -
Closing Bell: Market Rebounds To End With Gains For 5th Straight Day; Sensex & Nifty Soar Led By Banks -
Gold Prices Ayodhya: In Ram-Janma-Bhumi, 24carat Falls By Rs 380 In 10-Grams, Drops By Rs 3,800 In 100-gram -
Penny Stock Hits 2nd Upper Circuit After Declaring Earnings, Gains 14% In 1-Week -
Rs 8.50/Share Dividend Recommended: Nestle India Reports 27% YoY Jump In Profit -
0.50% Dividend Yield: Midcap Cement Stock Slumps 10% Following Weak Q4 Results; Profit Down 48% YoY -
1:10 Split, Rs 147/Share Dividend: FMCG Major Likely To Report Profit Growth; Buy Or Sell?
Where Should You Invest For Your Emergency Fund?
Future is uncertain and you will emerge as a successful financial planners only if you are able to wade through some crisis intelligently.
Time and again experts suggest creating a sizable corpus as emergency fund to tide over any unforeseen situation that requires finance. Usually a minimum of 4-5 months of salary for a salaried class individual is suggested to be kept aside.
Now the question arises, where can you park this amount to reap a good enough return on it which is liquid at the same time.
In case you try to accumulate the amount by keeping it aside in a bank's savings account. The returns are low and also taxable in the hands of the investor as any amount over Rs. 10,000 in a year on a savings account is eligible for tax implications. Nonetheless, despite the current trend, wherein nearly all major banks have slashed down their interest rate offering on savings account, few new-age banks and some of the Payments Bank which recently began their operations are fetching better returns than their counterparts.
Liquid or Ultra short term funds: Ultra short term or liquid funds can also be chosen to build the emergency corpus. The return on them on an average has been known to be 6.5% which is not in line with the interest provided on savings account that is primarily based on the average daily balance in the account.
Other option can be short term FDs which in the current scenario are not offering as good return.
In the other case, when you have not been proactive on the front, avoid taking personal loans instead opt for overdraft facility or loan against property, gold, insurance and other investments as they are a way cheaper from these loans which are offered at a high rate of anyway between 18-32% interest.
Goodreturns.in
