Suggestions on investing surplus cash and how to make best use of Emergency fund

POSTED BY pradyush Mishra ON September 5, 2013 2:14 am COMMENTS (2)

Hi ,

I just surrendered a ULIp and a couple of Mutual funds .

I now have around 5L of cash with me .

Out of that I plan to allocate Rs 3L as an Emergency Fund .

How do I invest back the Rs 2L left with me .


Presently I am continuing my investments in HDFC Top 200 and SBI Emerging funds .

The SIP for both of them is Rs 2500 .

I plan to add Quantum Long term Equity ,IDFC primiere and DSP BR Top 100 .

I plan to invest Rs 25000 per month in Mutual funds and plan to share the amount among the 5 above mentioned Mutual funds  .

I want some suggestions on 

1. How to invest the Rs 2 Lakhs left with me (after carving out the Emergency fund of Rs3L) .

2. How to use the Rs 3L emergency Fund in the best way possible .

    Like do I invest a portion of the amount in Liquid funds and keep the rest as cash in my savings      account . Or do I try to go for a FD .

I have just started learning the Nuances of Investing and there are many things/terms I might not be acquainted with . So please be patient when responding to my queries .

2 replies on this article “Suggestions on investing surplus cash and how to make best use of Emergency fund”

  1. pradyush Mishra says:

    Hi Ashish ,
    Thanks a lot for the response….
    I went through your post and got a lot of info…
    Thanks again….

  2. Ashish Garg says:

    Hi Pradyush,

    May be the below link can help you a little. I had asked the similar question sometime backa and got some good responses.



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