Putting the emergency fund in equities really undermines the premise of having an emergency fund. A primary purpose of having an emergency fund is so you won't

Putting the emergency fund in equities really undermines the premise of having an emergency fund. A primary purpose of having an emergency fund is so you won't get caught in a liquidity crisis and be forced to sell assets when prices are low to raise cash, thereby losing money. The probability of this happening skyrockets if you invest your emergency fund in stocks because chances are the time when you will need your emergency fund is when you are laid off or facing financial hardship. This is frequently during a recession when asset prices are low and you don't want to sell. I'm somewhat concerned about my own cash reserves right now as it happens, and I wish I'd kept more cash on hand.