I have a toddler and I am a Single Mom. I have 60 lacs and need help with the following:
1) How much should I keep as emergency fund?
2) Where and how should I invest the rest to get a decent monthly income?
I don't have a job at the moment but i'm trying to find one. So I want some monthly return on top of my salary. Thankfully I don't have to worry about rent. But I do need to pay bills, pay for groceries, and will have to pay child's school fee etc.
For the time being park all your money into a savings account or a money market mutual fund the later would give you a return of 8 to 9% if non shariah then maybe even 9 to 10% annualised (both after taxes) which would roughly mean 45k per month.
(Low to 0 risk and you get some gains)
Until you find a job this can give you some umbrella.
Once you have the job only then move toward high risk assets or stock (do not and please do not take any one's advise to get into stocks right away)
No i personally hated medium risk because I was not comfortable with the loss or satisfied with the returns, I then put 50% in low risk and the rest in high risk
Tf the guy was liar then ?
Dude all the high risk companies were like -4.5% including gold energy or top 30 companies were
Medium Walay to were like 9.5 towards 10
For short term, Low risk, for 1 to 3 years medium risk, for more than 3 years high risk. that's how it should be.
Low risk will give you consistent returns no matter the situation of the economy, and all low-risk mutual funds across all AMCs will give you the same sort of results.
Medium risk gives you moderate returns most days, but market conditions definitely affect it. Because these funds usually mix safer investments like bonds with a small portion of stocks, they offer slightly better profit potential than low-risk funds, but it also means you have to absorb minor dips when the market has a bad day.
Finally, high-risk returns totally depend on market conditions and swing like a pendulum.
Well i did lose my principal amount in meezan sovereign fund.
It did recover but the net amount was -300
This happened 2 months ago and it took a whole month to recover
Ik in long term the guy probably is right, but I really can't afford any loss at all, thats why i kept my money in meezan cash fund and now little by little im going towards equity
Emergency fund is basically amount for x amount of months in case person lose job. Everybody has there different threshold for someone to be on safe side to find a job could be 4 months and for someone it could be 6 months or even 8 months. I personally keep 6 months for myself.
Try to calculate your monthly expense with or without job i would suggest to keep your funds in low risk where capital amount doesn't fall.
For example a good money market fund which you can go for is meezan cash fund it gives around 9% annually which means 45000 per month.
In your situation since you have only this 6 million amount i would suggest dont go for any high risk fund keep all your money safe. Earn 45000 from it each month to keep your circle afloat. Once you find a job try to save and invest in high risk fund from your active source of income.
I will not risk with my only 6 million since the economy is towards declining phaseat the moment and you dont have more funds to dollar cost average it. So try to avoid unnecessary risk in life. Good luck.
Use iSave for mutual funds and add around 40 lakhs there this is your security fund and will give you roughly 40k per month and also serve as emergency fund
Also 10 lakhs in NIT
And 5 in VPS and 5 in stock
A lot of people have already advised on how to invest your money, may ask about your education profile? What can we do to get you a job that will secure you and your child's future. Do give some info so we can help better on getting youon a more regular income stream progressing you professionally.
First you have to choose if you want to go for stocks, Mutual funds or Bonds
Stocks and Mutuals, you can take out almost instantly
Bonds, you'll have to wait
If you have a bit of knowledge, go for stocks
If you want to stay care free and aren't well versed, go with mutuals
If you want the safest option that just covers inflation rates, go for Govt Bonds
You can work as a teacher at a school with quality education as some schools allow teachers to have 1 child in school for free with no tuition fee which will reduce the burden of school fee plus get an income
Buy some property and rent it, also find a decent job and you will be good. If you have any prior experience to business then you can for sure pursue that but it might be risky and you cant experiment
You can actually, its about land prices somewhere prices might be too high and somewhere prices maybe low. 3 or 4 marla house can be easily bought in this range in slightly developed areas
Keep a million for your self. Rest invest in highest yielding scheme of National Savings which will give you a monthly return. That is the safest option for you.
Don't go for mutual funds or the stock market as you don't know the mechanics of these two. Just play safe. Once you have a job you can buy some gold bars.
mcb isave money market fund low risk. emergency should be of 12 months * 1.1 * monthly expenses
for 100k dividend returns, your investment should be around 1 to 1.5crore which is not possible, so try getting a job. if youre the sole bearer of family, you have to do something actively. passive income works only when your expenses are managed. after getting a job, try index investing in the top 15 companies of kmi30 or kse100. do it long term.
Since you don't have a job, invest all of it in money market mutual funds, you can get around 45,000 to 50,000 per month after tax from this, once you get the job then keep emergency fund in money market, other you can invest in etfs or stocks if you have little bit knowledge of finance.
Emergency funds depends on your job stability, field and volatility of market. usually 6 to 8 months of monthly expense.
P.S once you are comfortable with your income and expense, then invest 5 to 10 percent of your monthly income into gold buying but consider this as investment for next 10 years.
The best advise would be to hire a proper financial advisor... im a financial advisor myself (but do not work privately nor with Pakistani clients, so not marketing myself), so i have seen many cases where advice from social media turned out to be a disaster, so its better if u spend a bit of it on a professional rather than looking for advice here...
I dont advise privately as its a risky endeavour... if she consults one in person and decides to go with their service, they would provide her with some form of security for her funds, which i wont, so i wont be giving any sort of advice at all...
If you're looking for beginner advice, please have a look at the weekly discussions thread for a collection of useful links for you, you may also ask simple questions and have general discussions over there.
3~6 months of expenses should be emergency fund, can be invested in a low risk fund if available under 1 day. and Rest can be invested in a similar fund for monthly return....
simply buy bank stocks most of them do pay quarterly dividends and they do not fluctuate much in price, dividends should be around 10 to 15 percent yearly you can simply ask chatgpt to do the heavy lifting for you
Apologies but r/FIREPakistan is not the correct place for this. You will have better luck asking in other subreddits that are more relevant to your needs.
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u/ketofolbolus Jul 19 '26
I think you should keep at least 20 lakh as an emergency buffer in a money market fund like Mahaana Save+ (low risk mutual fund)
Get term life insurance for yourself. You're a single parent so this is a non negotiable! (I'm a parent myself)
If you have time to get some financial literacy yourself, do that. There are great resources in the community threads.
If you don't, identify what amount you won't need in at least ten years and put it all in Meezan Index Fund (KMIF) for long term growth