The job of this money is to be there instantly and to not lose value, so returns are not the point. In India, founders usually split it across a plain savings account for the first slice you might need overnight, and a low-risk, liquid option for the rest that you can redeem within a day or two. Keep it separate from your everyday spending account and completely separate from company money, so you are never tempted to raid it or confuse it with runway. Avoid parking it in equity, your own startup, or anything that could be down exactly when you need it. Skip lock-ins. Any interest or gains you earn are taxable, and the tax treatment of different instruments changes, so confirm the current rules with a CA or a qualified advisor. The measure of a good emergency fund is boring reliability, not yield.
A curated summary to orient you, not advice. The resources below are the real value.
2 hand-picked resources, 2 India-specific, 1 link-checked. Pick how you want to dig in.
Why we picked it What debt funds are, the types, the risks, and their recently changed tax treatment in India, before you park money in one.
From ClearTax by ClearTax
Open cleartax.in →Why we picked it A no-nonsense, ad-light India personal-finance site: plain math and free calculators for emergency funds, goals, and asset allocation, with no product to sell you.
From Freefincal by M. Pattabiraman
Open freefincal.com →The same ground, over in Money, pricing & model, our Starting Up track.
