Emergencies don’t knock the door!!!!

Emergency Fund

Emergency Funds- The moment we hear this, it reminds us of our Savings A/c; isn’t it??? Most of us often confuse our Savings A/c with an emergency fund and hence believe that our savings a/c is our emergency fund.

If I go by the literal meaning of Emergency Fund – “It is that cash that one saves for the sole purpose of helping him/her maintain a normal life in times of unforeseen emergencies”. Now tell me – “Is it justified to call Savings A/c an emergency fund?” We use savings account for both our needs and wants whether it be our daily living expenses or shopping or entertainment expenses. And as the month end approaches, in most cases the balance in savings a/c tends to get to its lowest levels. Continue reading “Emergencies don’t knock the door!!!!”

Dont Discontinue your SIP’s

Businessman Watching Timer

Few days back we wrote about the state of India economy and the bad phase our economy is undergoing. The impact of it is very evident by the way stock markets have been performing especially the equity funds. There is a wave of withdrawal in the markets and people are closing their SIP’s in a rush.

If we talk of SIP’s – SIP as a mode of investment helps in two ways.

  1. It enables you to save month on month and these regular savings helps to accumulate money over a period of time.
  2. SIP in equities also helps in Rupee Cost Averaging i.e. where we buy less units when markets are high and more units when the markets are low. This not only helps to reduce your purchasing cost but also give returns in long run.

Continue reading “Dont Discontinue your SIP’s”