How To Use Savings+ To Build an Emergency Corpus?

An emergency corpus is an essential component of a financial plan. Fixed-income mutual funds can be a suitable avenue for such a rainy-day corpus. These funds offer relative stability and better return potential than savings accounts.

Savings+ can potentially help your surplus funds grow while keeping them readily available for emergencies.

• Table of Contents

1. Understanding Savings+
2. How to use Savings+ to build emergency funds
3. Key benefits of Savings+
4. How Savings+ can benefit different kinds of investors

Understanding Savings+

Savings+ facility by Bajaj Finserv AMC allows you to invest your surplus funds in the Bajaj Finserv Overnight Fund or Bajaj Finserv Liquid Fund. These funds primarily invest in short-term, low-risk debt instruments like commercial papers, certificates of deposit, and treasury bills.

They have the potential to offer relatively better returns than traditional savings accounts. However, it’s important to note that these returns may not be guaranteed.

These schemes allow investors to instantly redeem up to 90% of their invested amount, or Rs 50,000, whichever is lower. This feature ensures quick access to funds in an emergency.

How to Use Savings+ to Build Emergency Funds

Visit Savings+ on www.bajajamc.com. Then, follow these steps to create a rainy-day corpus:

• Get started: Link your bank account to Savings+. The portal will display your savings account balance and surplus funds available for investment.
• Choose a fund: Once registered, you can decide how much to invest and when and in which fund, based on your finances and goals.

Key Benefits of Savings+

• High liquidity: The insta-redemption facility allows quick access to funds, offering peace of mind during unforeseen circumstances.
• Low risk: The funds in Savings+ are invested in Bajaj Finserv Overnight Fund or Bajaj Finserv Liquid Fund. These are relatively stable mutual funds and are not as volatile as equities or other long-duration debt securities. This makes them a suitable option for building an emergency corpus.
• Ease of use: Managing your investments with Savings+ is straightforward. You can invest as much as you like, whenever you have surplus funds – you do not need to follow an investing schedule. However, regular reminders are sent to encourage investing discipline.

How Savings+ Can Benefit Different Kinds of Investors

• For the risk-averse investor: Liquid funds and overnight funds are relatively stable fixed-income options and potentially offer higher returns than savings accounts. Conservative investors can use Savings+ to supplement their savings account funds with small investments in these low-risk avenues. With no commitment to a fixed investment amount or frequency, conservative investors can start with investing a small portion of their funds to assess the return potential without exposing themselves to significant risk.
• For the aggressive investor: Aggressive investors can use Savings+ as an avenue for diversification and to reduce overall portfolio risk. They can supplement their equity investments with debt mutual funds through Savings+ or use this facility to build an emergency corpus.
• For the balanced investor: Balanced investors who understand the importance of diversification might find Savings+ a convenient and accessible investment option. It may add an extra layer of liquidity and stability to their portfolio, which is crucial for unplanned expenses and emergency needs.

Conclusion

Savings+ offers a practical avenue to grow your money while maintaining accessibility. Whether planning for emergencies or looking to diversify your portfolio, Savings+ can help you potentially achieve your goals.

FAQs

What is Savings+, and how does it work for building an emergency corpus?

Savings+ by Bajaj Finserv AMC allows you to invest surplus funds in low-risk, short-term debt instruments like Overnight and Liquid Funds. These investments potentially offer better returns than traditional savings accounts while maintaining high liquidity, making them suitable for an emergency corpus.

How quickly can I access my funds in case of an emergency?

Savings+ allows investors to instantly redeem up to 90% of their invested amount, or Rs 50,000, whichever is lower. This high liquidity ensures that your funds are readily available for emergencies.

Is Savings+ suitable for risk-averse investors?

Savings+ can be suitable for risk-averse investors as it invests in relatively stable fixed-income options like Bajaj Finserv Overnight Fund and Bajaj Finserv Liquid Fund. These avenues offer higher return potential than a typical savings account. They are also relatively stable and do not carry as much risk as equities or long-duration debt investments. This can make them suitable for building an emergency corpus.

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.

This document should not be treated as endorsement of the views/opinions or as investment advice. This document should not be construed as a research report or a recommendation to buy or sell any security. This document is for information purpose only and should not be construed as a promise on minimum returns or safeguard of capital. This document alone is not sufficient and should not be used for the development or implementation of an investment strategy. The recipient should note and understand that the information provided above may not contain all the material aspects relevant for making an investment decision. Investors are advised to consult their own investment advisor before making any investment decision in light of their risk appetite, investment goals and horizon. This information is subject to change without any prior notice.