Are you one of those investors who never bothered to put an emergency corpus in place? Or were you unfortunate enough to spend the money on an emergency just before the covid-19 crisis broke out?
In either case, you may be worried now as the possibilities of a job loss or a health emergency loom large as the covid-19 pandemic rages on. “In this type of situation, you need 12 months of living expenses, including EMIs, as emergency fund.
If there are two earning members in your family, it can be for six months. If you don't have this, create it first. You can even stop some ongoing investment, till you create the emergency fund," said Melvin Joseph, a Sebi-registered investment adviser and founder of Finvin Financial Planners, Mumbai.