POSTED BY July 30, 2013 7:05 pm COMMENTS (6)ON
Having build my Equity mutual fund portfolio, I wish to invest in a liquid fund, which would serve 2 purposes:
1. As emergency fund (around 6 times monthly expenditure).
2. A pool for rebalacing with Equity funds (every 1-2 years).
My question is: Is it advisable to invest in liquid funds for indefinite period, as I dont know when I may require emergency funds. I know that other debt funds can give bit higher returns (albeit with higher risk), but I would like only one fund fron debt mf category.