Keep your emergency fund in a liquid or ultra-short term fund with no exit loads
Ensure that your emergency funds are maintained in an investment vehicle making a nominal return, instead of holding these in cash
I had wanted to use my last year’s Diwali bonus towards tax planning. But the way events took shape, I had to put all my emergency money into the bank. Now, even after all the investments, I am sitting with a large amount in my savings account. Ideally, I want to take most of it out and replenish my emergency fund, as I have young children and old parents to look after. Hopefully, I will be able to do that in a few months. Please advise what I should do with the money till then. I can spare about Rs2 lakh now, but would like to withdraw most of it as soon as possible.