Emergency Fund

Emergency Funds
Monthly Expenses
Existing Funds
Required Funds
Excess/Shortfall ₹ 100,000
Coverage Analysis:
Adequacy Ratio117
Current Coverage (Months)7.0
StatusADEQUATE
Recommended ActionSURPLUS: 1,00,000
Recommended Allocation:
InstrumentApprox Return (p.a)LiquidityAllocationAmount
Arbitrage Funds6-8%(T+2/T+3) % ₹ 300,000
Liquid Mutual Fund5-6%T+1 % ₹ 210,000
Sweep-in FD6-7.5%Instant % ₹ 90,000
*Arbitrage Funds are taxed as Equity Funds thereby enjoying equity taxation benefits
Emergency Fund Comparision
₹ 700,000
Existing
Funds
₹ 600,000
Required
Funds
Emergency Fund Allocation
₹ 90,000
₹ 300,000
₹ 210,000
Arbitrage Funds
Liquid Mutual Fund
Sweep-in FD