The D’Souzas are in their early 30s. The young couple is thinking about a financial roadmap. They want to create an emergency corpus before making any investments. The contingency fund is necessary to take care of expenses in case of any unforeseen loss in income.
However, they want to know why can’t they just raise a loan to deal with an emergency. They also cannot understand why the investment they are planning to make in an equity mutual fund can’t be designated as their emergency fund.