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What is an emergency fund and why do I need one?

This financial emergency could be in the form of

Medical expenses
A job loss
Repair work to your home or car
Unexpected travel expenses
or any other tough time.
2020 taught us the importance of saving for uncertainties, when unemployment rose and people started redeeming from their investments and increasing their debts. Having an emergency fund keeps you away from tapping into mutual funds reserved for long term goals.

How much to save

It is recommended that you need to have enough money at your disposal that can keep up with your consumption pattern for ideally 12 months. If your monthly expenses are Rs 50,000 then your emergency fund should save 50,000×12 = Rs.6,00,000 for your emergency fund.

However, the size of your emergency fund will vary depending on your lifestyle, monthly expenses, income, and financial dependents. Those who have EMIs or higher monthly expenses might need to start building a larger emergency corpus. If you have no financial obligations or if you are young, you can reduce your weightage to six months’ worth of expenses.

Where to invest

Follow the SLR (safety, liquidity, and return) philosophy while building this corpus. Consider financial instruments that prioritizes safety and liquidity of your money over returns. Consider bank deposits and liquid funds (with a short duration of 3 months) for building your emergency corpus. Those who are beginning to save can start with one month and then gradually build it up from there. As per SEBI norms, liquid funds invest in debt and money market securities with maturity of up to 91 days. The invested money is parked in market instruments such as Certificate of Deposits, Commercial Papers, Term Deposits, Call Money, Treasury Bills, and so on.

Things to consider when building your emergency corpus

Liquidity: Liquidity refers to how quickly your investments can be converted to cash. Invest in instruments that does not attract high penalties or exit loads.

Safety: Avoid saving in instruments that have high risk for capital erosion, instead, prioritize safety over returns.
Co-relation with other asset classes: Your investment portfolio has several asset classes, it’s important to evaluate how your emergency fund fits in with the rest of your portfolio.
Risk appetite: If you are conservative and have a low threshold for risk, you might want to consider a higher sum dedicated to your emergency fund.

Mutual Fund Types and how do you choose

Mutual Funds are of many kinds and it’s easy to get lost even for an experienced investor amongst the wide array of funds available to you in the market.

To enable our investors to pick the best mutual fund to achieve their financial freedom, let’s understand in details, the ways in which mutual funds are classified.

Mutual funds can be classified on the basis of investment objective or on the basis of maturity period.

Closed vs. Open-Ended Funds

Open ended Funds

Subscription: Open ended Funds offer units for sale without specifying any duration for redemption.
Selling price: Redemption value is on the basis of the ongoing NAV
Maturity: Doesn’t have a set number of shares or maturity period
How is it traded: Not traded on the open market (like stocks), NAV of such schemes is generally less fluctuating
Liquidity: Can be redeemed anytime
Closed-ended funds

Subscription: Subscription opens at the time of New Fund Offer (NFO) and for a defined period only.
Selling Price: Price varies depending on supply and demand
Maturity: Set number of shares and a fixed maturity period.
How is it traded: Listed on a recognised stock exchange. They can be traded at any time of the day when the market is open
Liquidity: Fixed lock-in time period, however can be bought and sold on a recognized stock exchange where they are listed.
Mutual fund can be categorized as per asset classes. Broadly, they can be classified under the following seven broad categories:

Equity Mutual Fund
Debt Mutual Fund
Gold Mutual Fund
Multi Asset Fund
Hybrid Mutual Fund
Solution Oriented Schemes and
Other Mutual Fund
Knowing which fund is right for you is essential to making confident investment decisions to grow your wealth in a sustained manner.

Mutual Funds- How does it work and Why should you Invest in them?

One of the easiest ways to begin your journey as an investor today is to invest in a mutual fund. The concept of a Mutual fund is simple.

Article content:

One of the easiest ways to begin your journey as an investor today is to invest in a mutual fund. The concept of a Mutual fund is simple.

Money obtained from investors is pooled together. Investors may be individuals or companies.

A fund manager manages this pool of money and invests the cash on behalf of the investors. His goal varies depending on the type of fund he manages.

For example, a fixed-income fund manager seeks the highest yield at the lowest risk for his investors.

How you can benefit from Mutual Funds

A key reason for investing in mutual funds is that it’s simple and convenient.

But that’s not just it.

The industry is also tightly regulated in comparison to our friends in the banking and insurance sectors. In recent times, investing in Mutual Funds is being considered relatively as a safer and more lucrative option to certain financial instruments.

In addition, your investment will be managed as part of a pool by a professional fund manager who constantly monitors the stocks and bonds in the fund’s portfolio. We can certainly accept that a fund manager can devote considerably more time to selecting investments than an individual investor.

This is a very convenient option as you will be able to invest in an informed manner without having to stress over analyzing financial statements of companies and picking a stock yourselves.

So here’s our quick roundup on Why should you invest in Mutual Funds?

Low Minimum Investment: Start your investment from as low as Rs. 500/- in SIP (Systematic Investment Plan) or Rs. 5000/- in lump sum.
Liquidity: Unlike bank fixed deposits, mutual funds have a flexible withdrawal process, which makes availability of money possible easily. Investor can redeem their units at any point in time.
Professionally Managed: Once you invest through Mutual Funds, you can relax that an expert will make desired changes to scheme portfolio wherein you have invested.
Diversification: You can invest across different asset classes like equity, debt and gold allowing you to diversify your investments and protect it from inflation, recessions and any other market uncertainties.
You can achieve you goals, be it long-term, short-term, tax saving or your emergency needs.

Achieve Financial Goals: A Systematic Investment Plan (SIP) will help you make the most of the compounding effect. You can find a suitable scheme for all your different financial goals such as wealth creation, child’s marriage or retirement.

Transparency: The Mutual fund industry is regulated by The Securities and Exchange Board of India (SEBI). SEBI has defined comprehensive processes, rules and regulations in order to protect the interest of investors and ensure transparency. It is mandatory for all Asset Management Companies (AMCs) to follow these processes and to disclose their scheme portfolios every month to maintain utmost transparency.
Disclaimer, Statutory Details & Risk Factors:

The views expressed here in this article / video are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the reader. Quantum AMC / Quantum Mutual Fund is not guaranteeing / offering / communicating any indicative yield on investments made in the scheme(s). The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the reader. The article has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and views given are fair and reasonable as on date. Readers of this article should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments.

Understanding Civil Engineering Consultants & The Merit They Bring To Projects

The central pillar of any project that requires construction is MEP service. The value of MEP is mammoth to an engineer, architect and even the owner of a construction project because they add a significant difference. The complexity and technicality that MEP operations require, mandate the need for knowledge and experience. Only a professional modeler is capable of delivering both.

Understanding The Vitality Of MEP Services

The mechanical, electrical and plumbing requirements of any construction project are encompassed within MEP. An MEP model, therefore, is created by respective engineers who are considered as the technical savants in their fields. They are adept at MEP methodologies and qualified to resolve any complication that arises during building. These are the people who create a safe, working and comfortable environment within a residence or commercial building.

Most often an MEP would be consulted for:

To inspect that all mechanical, electrical and plumbing systems are precisely installed during construction.
To audit the existing systems, identify errors in it, correct the mistakes and improve performance.
Irreplaceable Roles Of MEPs
MEP engineers are an investment that warranty the optimal working condition of any space for the entire lifetime. The specific jobs and responsibilities each endeavour to perform are:

Mechanical Engineers are the individuals that make the habitat or environment of the building a comfortable zone. The roles they play are installation and future maintenance of all the heating and cooling systems. Their work results in:
Efficient heating
Sufficient cooling
Proper ventilation
Electrical Consultants are the experts who take care of lighting of the project and all electricity needs. Some of the functions they accomplish are:
Active fire alarms
Complete security systems
Suggesting eco-friendly choices such as energy-efficient lights
Plumbing Engineers complete every building plan by offering plumbing solutions. They are skilled at recommending and installing:
Gas systems
Water solutions
Sewer arrangements
It is expertly designed plumbing structures that guarantee a correct supply of water and precise transfer of wastage.
Indispensable Benefits Of MEPs

The jobs mechanical, electrical and plumbing engineers accomplish, afford particular advantages to a construction project. The four significant paybacks of employing MEP consultants that prove to be a requisite for every venture are:

Design that is effective, operative and seamless. When MEP create systems for development, they make certain that they run for a long time, deliver their worth and are economical.
An environment that is healthy, beneficial and supportive. MEPs are known to design and plan buildings which utilise natural daylight and control extreme conditions like moisture penetration. They scheme a residence with an indoor atmosphere that keeps the inhabitants fit and well.
Mechanisms that are automated, safe and user-friendly. Homes and buildings use hardware and software that control every corner. These mechanical systems, when installed by MEP, do not glitch during operations and keep the residents protected.
A budget that is limited and worth every investment. When MEP are employed for a venture, they remain within the financial boundaries while fixing systems. Furthermore, every installation is the most cost-effective option of all.
Comprehending Industrial Architects
MEPs make a just one category of consultants that are a necessity for a civil construction project. Architects are another. They are the professionals who design the structure of the building while keeping it:

Aesthetically Beautifu
Extremely Function
Completely Sheltered
Not Economically Prohibitive
The era when the same architect developed commercial, industrial and domestic buildings is now gone. A different authority plans each. Industrial architects are specialists who create industrial complexes. A few of the properties that can be designed by them are expanded below.
What Do Industrial Architects Design?

Any location where a commercial exchange occurs. This includes:
Banks
Stores
Markets
Warehouses
Office buildings
Exhibition halls
A structure that requires infrastructure supporting transportation like:
Bridges
Tunnels
Garages
Airports
Seaports
Fuel stations
Railway stations
Centres that manufacture items and products like labs, factories, plants, and mines.
They also design power installations such as:
Dams
Fuel storage
Generating plants
Processing and distribution units
Some other buildings that can be created by them are press and media centres, communication infrastructure and all commercial facilities.
The Duty Of Industrial Architects
Underneath, we take a look at the key responsibility areas of industrial architects while designing a building:

They develop plans of the project by writing and reviewing specifications.
They are responsible for communicating the ideas to all contractors and assigning the job. This incorporates creating schedules and maintaining them.
Industrial architects also take a supervisory role and ensure implementation of the plans during construction.
They even develop the financial estimates of building, keep an eye on it and forecast any alterations.
The birth of the industrial revolution heralded a new era which necessitated the creation of tailored commercial and industrial spaces. Industrial architects are the brains behind this branch of design and construction. They cater to the demands of the ever-changing industry by applying their know-how and expertise. Without them, enterprises would not have the distinct structure and features required for increased productivity and better efficiency. Without industrial architects, machinery and equipment wouldn’t be laid out precisely to augment processes.
MEPs and Industrial Architects are two undeniable needs of any construction project, but only the best can deliver what is required. At Besten, we promise to be the consultant experts your project necessitates. Known throughout Chennai and further as the foremost architects and consultants in chennai, we are the team you need for any modern design. From MEP system experts to top-notch industrial architects, we employ only the most qualified and trained professionals. Don’t take our word for it, swing by our site or drop us a mail to see proof.