Cash ISA or Additional Tracker for ‘reserve’
Looking for opinions.
What’s the thinking on using tracker funds for ‘rainy day’ or reserve funds?
For context, I have always kept a small pot of cash outside of regular savings, as a reserve - the typical boiler breakage etc. At various times I’ve kept this in NS&I premium bonds or cash isas - something I don’t need immediate access to, but would be able to get within say 30-60 days.
It’s occurred to me that this has sat relatively under valued.
As our financial situation has improved the likelihood of needing this has diminished, but I want to keep the idea of a reserve and some level of access.
Would you put into a tracker fund instead? Recognising that there is a risk if needed in a down turn I could end up pulling out with a loss, but the more likely case is growth.
Note, already have existing tracker funds, other cash and pension etc.