We often do a lot of work without preplanning, we do it without thinking about what will happen 2/3/4 weeks, months, years after doing the work? We work without thinking about what can happen which later makes us face difficult problems.
Most of the time we invest our emergency fund in the wrong place due to which we have to pay later.
We do not understand which type of collection should be invested in which sector.
I think everyone should do a lot of study on this before investing.
It is never a good idea to invest anywhere with your emergency fund. I think keeping your emergency fund in cash is the best way. Because if you are in the midst of some kind of financial disaster, then if you cannot get the money immediately, then what is the use of your emergency fund? If you invest your emergency fund somewhere else and if you are in the midst of a financial disaster at that time and if your investment goes down at that time, then you will have to sell it with your loss, so it is never a good idea to invest with your emergency fund.
An emergency fund is an important fund. If you do not keep your emergency fund or invest your emergency fund in some other place, it will not be logical. Emergencies do not come with any advance notice. Emergency funds come suddenly, so you need to be alert so that you can deal with the emergency situation with your emergency fund. I have seen many people invest their emergency fund money in other places. So, since they do not have an emergency fund, they spend the money they have invested in that emergency situation.
Of course, your emergency fund is an integral part of your life path. It protects your discretionary fund as well as your emergency situation.