Emergency fund is fund required for any type of financial emergency like job loss ,health issue ,family issue etc
Without emergency fund you have to sell your investment or borrow for outside quickly .
Such circumstances often create big financial burden as high borrowing cost and low return on investment create less income .
Better to have emergency fund for good management of finance.
Emergency fund should be investment in saving account and have quick liquidity and availability
Emergency fund should be between 20 to 25% for saving your saving if u r low earner and should be between 2 to 5 % for high earner