Everyone needs An emergency fund for any type of financial emergency like job loss, health issues, family issues, etc.
Without an emergency fund, you have to sell your investment or borrow for outside quickly.
Such circumstances often create a significant financial burden as high borrowing costs and low return on investment generate less income.
Better to have an emergency fund for sound management of finance.
You should invest an emergency fund in saving accounts and have quick liquidity and availability.
An emergency fund should be between 20 to 25% for saving if you are a low earner and should be between 2 to 5 % for a high earner.