Contingency funding: creating a cushion to fall back on?

contingency funding: creating a cushion to fall back on

Level - INTERMEDIATE

Watch this investor education video by Moneykraft to know the importance of planning and creating a contingency fund to protect against breaks in income earning capacity.

AUTHOR(S): Taruna Changulani

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Contingency funding: Creating a cushion to fall back on

 Watch this video to know the importance of planning and creating a contingency fund to protect against breaks in income earning capacity.

1 2 3 4

    1.Which of the following asset is an appropriate investment choice for contingency fund?



  • Equity Funds
  • A plot of land in your hometown
  • Bank Deposits
  • 2.If you save 25% of income every month how long will it take to build your contingency Fund?



  • 20 months
  • 30 months
  • 24 months
  • 3.As a thumb rule, what should be the corpus that one should set aside for contingency?



  • 6 months' income
  • 6 months of critical expense
  • 12 months' income
  • 4.While selecting an investment option for contingency fund, one must pick



  • Assets that are Safe and liquid
  • Assets that generate High Returns
  • Assets that are locked -in for long tenure
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