Can we survive if all of our bodily fluids💧 are soaked up?

If not, how do our finances function when there is no liquidity? ⚡

We frequently underestimate the significance of Liquid funds.

Liquid funds are an important component of any portfolio because they provide safety, liquidity, and diversification.

a) Emergency Requirements: 📌️

We always take safety precautions while driving, such as wearing a seat belt in a car or a helmet on a two-wheeler.

An exclusive contingency fund, upto 6 months of our monthly expenses should be built and maintained throughout the year.

b) Rebalancing the Portfolio: 📌️

By realigning all asset classes once a year. Liquid Fund helps manage risk and improve overall portfolio performance.

90% of investors overlook this critical element. They disregard the significance of rebalancing. 😒

c) Opportunity Calls: 📌️

We can temporarily keep our funds in liquid form to take advantage of any future opportunities.

It has been observed that whenever there is a substantial market correction, we all miss out on a big opportunity due to a lack of liquidity.

When other asset classes do not perform well, liquid funds are always available to support our portfolio and meet our needs.

d) The Umbrella Fund: 📌️

Creating an umbrella fund that can be used for a variety of purposes such as

- Social Activity

- Philanthropy

- Gifts

- Appliances & Gadgets

- Personal Development, Learnings & Skill Acquisition

- Long-term Medical Care - since insurance cannot cover all medical needs.

This can be used as and when needed depending on the situation.

e) Psychological Protection: 📌️

Liquidity provides us with financial peace of mind in the case of an unexpected incident.

As a result, having a Liquid asset in our portfolio is strongly recommended.

💎 The purpose of liquid funds is not to generate returns, but to have funds available 24x7.

Always keep your Body and Finances hydrated! 🔔

How many and what types of liquid funds do you maintain in your portfolio?