Confused about creating an emergency fund? Here's your complete guide

Consider an emergency fund equal to one year of expenses, otherwise six months is adequate.

My wife (32) and I (33) are a working couple. We have been investing in mutual funds via the systematic investment plan (SIP) route  for the past five years. All our investments are in equities. The only fixed-income investments we have are employee provident fund (EPF) and public provident fund (PPF). Do we need to invest in debt, or should we continue with our equity investments?

That you invest in equities is fantastic. A good mix of investments across categories should be made using the yardstick of time. If you are investing for a financial objective that is one-two years away,