POSTED BY August 25, 2012 10:05 am COMMENTS (6)ON
I would like to create 3 lac Rs of emergency fund …
I am confused on how to approach it. I have account in ICICI Bank (+ICICIDirect Trading) and IDBI bank.
On this forum, I read about Short Term/Ultra Short term funds and liquid funds to accomlish this.
1) How should I go about on allocating this (% in Sweep FD, Debt MF and Liquid Fund)
2) Why anybody would choose Liquid or Money Market fund when there is 27% DDT compared to 13% on Short Term/Ultra Short Term funds?
3) What is benefit of Long Term Debt funds over Short Term Debt Funds.. I mean why anybody would like to lock money for 1 year when same retruns can be available in Short Term Debt Funds? Is there different level of risk attached to them