Four Bucket Formula

==> Immediate needs and emergency funds

Unforseen events 

6-8 months of income 

Investment options:- FD, Debt mutual fund 

==> Small term requirements

2-4 years planned events, like travel, down payment of car etc 

Investment options:- FD, Debt mutual fund

==> Medium term requirements

5-7 years planned events, like down payment of home etc 

Investment options:- Can take some risk like large cap fund, hybrid fund 

==> Long term requirements

>7 years planned events, like children education etc 

Investment options:- NPS, PPF, Fundamental strong stocks, equality mutual fund, multi cap fund