InvestorQ : I’m a housewife and I want to create a cushioning fund for my family, which option is best?
Rohan Bhadani made post

I’m a housewife and I want to create a cushioning fund for my family, which option is best?

Answer
image
Gauravi Patel answered.
3 months ago
Follow
A cushioning fund here means the money you can use to avoid any increase in your liabilities or overdraft. So, for the fund to be sufficient, you need to invest it where you could get the best returns with the risk you are capable to bear. Now, I assume that for the fund to be a cushioning fund you can bear moderate to high risk. 

The first thing that I would suggest is to track your spending habits and then decide on the amount you might want to keep aside for the fund. Therefore, investment in the stock market could be the right option for you.

Stock market investment, typically equity, offers liquidity in case you are short on funds. The risk involved in this investment is high and returns are attractive. You do not have to invest regularly and there needs to be no fixed amount involved, so, you can invest at your convenience. If your investment is in shares, you could also be able to receive a dividend (if announced). 

However, you have to keep in the mind the market volatility and significant events happening in the economy as it could affect your investment negatively. It is also better if you gain some knowledge before investing in stocks, even though the market is unpredictable, it will help you build a better portfolio. If you do not have sufficient knowledge, you could always take the help of professionals.
12 Views