Financial planners often advise individuals to set apart at least six months of their earnings as an emergency fund in order to meet unforeseen expenses such as sudden hospitalisation, loss of jobs, etc. Such a fund is generally maintained in cash at home or in a savings bank account, which earns an interest of around 3.5%.
As a means to add value to investment services, mutual fund houses from time to time come up with novel ideas like life insurance cover linked to one’s Systematic Investment Plans (SIP) and others. On the same lines, most of the major MF schemes provided by ICICI Prudential Mutual Fund have a novel feature, called Medical Advantage Feature (MAF), which is designed to address the financial needs during times of hospitalization. This is interesting because arranging funds in times of emergency hospitalisation is a hassle which most often investors live through.
