I strictly followed financial blogs on net and started to have emergency fund for myself few months ago. Now i have 3 months expenditure ready in my hand.Unfortunately it is not earning any interest for me since i kept in my wardrobe. Actually found no time to plan for that. Now i want to park it in any good liquid fund. I dont want to keep it in savings account. Question is how do i choose a good liquid fund? And what are the implications? Please advice.
You may consider parking your emergency fund in a bank multi-deposit account and/or a liquid mutual fund.
Liquid mutual funds are good investment option for near-term (upto 6 months) cash requirements. The interest earned on the same is little higher than bank savings account.
You may find this useful: http://www.investmentyogi.com/investing/liquid-funds-an-ideal-option-for-short-term-investments.aspx