In Ayurveda, ojas is the vital force — the deep reservoir of immunity and resilience that protects the body against disease and stress. An emergency fund is your financial ojas. Without it, every financial storm becomes a crisis.
The standard guideline: 3-6 months of total expenses. If your monthly expenses are ₹60,000, your emergency fund should be ₹1.8-3.6 lakhs. For self-employed individuals, irregular income earners, or single-income households: aim for 6-12 months.
Liquid Mutual Funds: Best option — returns of 6-7%, can withdraw in T+1 day, no exit load after 7 days.
Sweep-in FD: Auto converts to FD when balance exceeds threshold; liquid when needed.
Savings account: Acceptable for 1-2 months portion; too low returns for larger amounts.
An emergency fund does something profound beyond its financial function: it gives you the courage to invest. Knowing you have a buffer, you won't panic-sell your equity portfolio when markets crash. You won't touch your long-term investments for short-term needs. It liberates your other money to do its job.
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