InvestorQ : What we should sell if needed money in an emergency - stocks, mutual fund, LIC policy, or any other option?
Anjali Desai made post

What we should sell if needed money in an emergency - stocks, mutual fund, LIC policy, or any other option?

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8 months ago
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It's difficult to answer such questions because this purely depends on your level of urgency and financial portfolio set-up. Generally, when one begins investing stocks and mutual funds, you should have an emergency fund in liquid mutual funds to take care of any untoward events arising in the interim.

In this case, if it were purely my choice, I would opt for a LIC policy premature submission. LIC policies are meant for only one end goal-life insurance. Mixing it with the insurance just tends to give you sub-standard returns and insufficient insurance. I would give up the LIC policy and when my financial situation is on firmer ground, would opt for term insurance.

Stocks and mutual funds tend to have a higher scope of giving inflation-beating returns over the long term horizon. Gold (ornaments) is an inflation hedge and a store of value. One must always keep some small proportion of the overall portfolio in gold. But this is just a personal opinion.

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