"No Fresh Loans": Investment Adviser Warns Of Tough Times, Urges Families To Build Emergency Fund

A Chennai-based mutual fund distributor has urged people to be financially cautious and build a substantial emergency fund, warning that difficult economic conditions could lie ahead. Muthukrishnan Dhandapani, who is also Congress leader Rahul Gandhi's investment adviser, said people should try to create a financial reserve that can cover their family's expenses for up to three years. In a post on X, Dhandapani advised people to avoid taking on fresh loans and reconsider major long-term financial commitments, including buying a house or investing in real estate.

"I'm no Nostradamus. I've been cautioning for the last two years about some of the possibilities I saw coming. I'll repeat it for the nth time. Try your level best to create a safe reserve or emergency corpus that can cover three years of your family's complete expenses," he wrote on X. 

"Don't borrow. No fresh loans. Don't take on long term commitments like real estate or a house purchase," he added. 

He also urged people to prioritise income security over specific job titles or positions. With several companies announcing layoffs and economic uncertainty affecting employment, he suggested that having a stable source of income should be the priority.

See the post here:

I'm no Nostradamus.

I've been cautioning for the last two years about some of the possibilities I saw coming.

I'll repeat it for the nth time.

Try your level best to create a safe reserve or emergency corpus that can cover three years of your family's complete expenses.

Don't…

— Muthukrishnan Dhandapani (@dmuthuk) September 29, 2026

Dhandapani said these measures could help people cope with difficult periods both financially and emotionally. He also remained optimistic that better economic conditions would eventually return.

"It's not that the sky is going to fall. The world has faced such crises in the past. It will see them in future too. Doing these things would help you manage tough times financially and emotionally, and good times will definitely be back in the future. Such is the nature of cycles," he concluded. 

His comments came as Indian stock markets declined for the second consecutive session. The Nifty 50 fell 64.05 points, or 0.28 per cent, to close at 22,716.20, while the BSE Sensex dropped 242.65 points, or 0.33 per cent, to end at 72,529.07.

Dhandapani's advice drew mixed reactions on social media. Some users questioned how realistic it would be for middle-class families to build even a smaller emergency fund, given their regular expenses and financial commitments. One user wrote, "Three years of expenses in reserve is a serious target, but the broader point is solid: when uncertainty rises, liquidity buys you options. You don't need to predict the crisis if you're financially prepared for one."

Another commented, "No disrespect to your intention, but do you know how difficult it is for middle-class people to have 3 months of reserve corpus forget 3 years!" A third said, "True, sir! Backup savings is absolutely needed. I wonder how people are queuing to buy the latest iPhone in these times."

A fourth added, "Cycles are inevitable, but preparation changes how you experience them. Protecting cash flow, avoiding unnecessary leverage, and staying adaptable can make a difficult phase much easier to navigate."