6 replies on this article “How can a NRI create his Contingency fund ? Where to invest ?”

1. Shaahul Hameed says:

   January 2, 2014 at 10:23 am

   Dear Ashal, Thanks for your valuable advise and detailed explanation.
   I will transfer and create a corpus in AUD for fast access of money.

   Reply
2. ashalanshu says:

   January 2, 2014 at 9:48 am

   Dear Shaahul, emergency fund is meant for emergency and that should be your prime importance. Do not try to play with fire for your own good. Trying to earn a few buck extra is everybody’s wish but there should be a limit between what should be and what should not be wished for. Also taxation issue for your MFs (liquid ones) ‘ll create another headache for you as you w’d pay 30% TDS and then you w’d have to file ITR to claim this amount (if STCG happens).

   Thanks

   Ashal

   Reply
3. Shaahul Hameed says:

   January 2, 2014 at 4:20 am

   Thanks for replying Ashal. I will think about it for sure.

   I can transfer it now and keep it my Australian bank account but it won’t be earning much here since the interest rates are low(around 2.5% to 4% PA)

   I understand the sole purpose of emergency fund is liquidity and non negative returns but I am eager to know if there is a way of investing in India which could achieve liquidity and decent returns.

   Sorry for dragging this along.

   Thanks,
   Shaahul.

   Reply
4. ashalanshu says:

   December 31, 2013 at 12:31 pm

   Dear Shaahul, why are you so sure that when the emergency ‘ll knock on your door, you ‘ll be in the position to transfer the funds from India within few minute. It ‘ll be hassle free, free of cost, no transaction delay…………………

   Please think over it. Also there ‘ll be taxation issue for liquid fund in India.

   Thanks

   Ashal

   Reply
5. Shaahul Hameed says:

   December 31, 2013 at 4:04 am

   Dear Ashal,

   I am planning to invest these funds though my NRE (FD and Demat) account and transfer it back when needed.

   I am also planning to create a emergency fund at a later point of time in AUD for 2 or 3 months.

   I am having a home loan and planning to close it before i create a AUD emergency fund. till then i can treat the 7 lacs as contingency fund.

   Please advise whether it is the right approach.

   Thanks,
   Shaahul.

   Reply
6. ashalanshu says:

   December 30, 2013 at 4:14 pm

   Dear Shaahul, being NRI, how w’d you use these funds for yourself out of India?

   Thanks

   Ashal

   Reply

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