An emergency fund is 3–6 months of essential expenses — rent, EMIs, groceries, utilities, insurance, school fees — parked in an instantly-accessible place. It exists so that a job loss, medical event or family emergency doesn't become a financial one.
Bare minimum
3 months
Dual income, stable jobs
Standard
6 months
Most Indian households
Aggressive
12 months
Single income / freelancer
Where to park
Liquid MF
or high-yield savings
Recommended split of a ₹6L emergency fund
Rule: don't invest in equities until this fund is fully built. It's the difference between selling stocks at a loss during a crisis and holding through it calmly.