Debt Funds as Emergency funds

POSTED BY vazzy ON October 2, 2010 11:50 am COMMENTS (3)


Can we have a part of our emergency fund in short term debt funds (like Templeton India short term income) since they have higher liquidity?  I know the performance is based on interest rates but would like to hear experts’ opinion on it.

3 replies on this article “Debt Funds as Emergency funds”

  1. Suhas Zore says:

    I too need advice on similar lines .
    Where to park funds to get better than than BANK FD.
    Can some one name few options
    Thank you

  2. gkdoda says:

    I never advise anyone to park “emergency fund” in debt funds. Market holiday, bank holiday or bank strike can effect your timings in “emergency”.

    Just put your such money in fixed deposit with the bank where there is 100% liquidity & you can get better interest than savings account.

    Hope it will Help You.

    1. vazzy says:

      Thank you!

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