Emergency Funds: Radhika Gupta of Edelweiss Mutual Fund Gives Advice for Surviving Market Volatility
Radhika Gupta, CEO of Edelweiss Mutual Fund, has said that it is essential for investors to keep some money aside for emergencies and stay calm.
She posted on social media that exactly five years ago, the market was completely down, and she felt like the world was ending. She stated that emergency cash, which she saved up and staying calm helped her during that time.
In her previous posts, the CEO stated that investors should always remember that the bad phase does not last long, but the good investors do.
In her post, she wrote, “If it feels like hell right now, remember it did in 2008 also. And 2020. And we all survived, as we always do. Bad times don’t last. Good investors do.”
What is an emergency fund?
An emergency fund is money you set aside to cover unexpected expenses or financial emergencies. It works as a safety tool for your finances. It ensures that you do not sell your long-term investments when the market is down. Keeping enough money saved (around 3 to 6 months of your expenses) gives you the capability to stay invested when the market declines and your stock portfolio is showing losses.
