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How much should I invest through QuietGrowth?
- a 'rainy-day fund' in term deposits, low-risk fixed-income instruments or cash. If the rainy-day fund comprises of a small portion of higher-risk equity exposure, then such instruments should be highly-diversified. It should cover at least six months of expenses to deal with any unexpected emergencies (such as unemployment, illness) that might arise in your life as well as in your dependent family members' lives. The rainy-day fund would also include six-month's worth of any monthly payment commitments that you might be having towards mortgages, loans and insurance premiums.
- an optional 'discretionary fund', of a size that you are comfortable with, if you have the financial strength and appetite to easily withstand the loss of that entire amount in the worst-case scenario. The amount in this discretionary fund can go towards investing in risky opportunities in which you personally believe and understand. Examples of such risky opportunities include a specific stock, a personal loan for a relatively-higher interest to a friend, or a business venture of your friend.