Loans against mutual funds are being used as a cash-flow management tool by professionals and entrepreneurs. By pledging investments instead of liquidating them, borrowers maintain portfolio continuity while meeting short-term obligations. The process is typically digital and allows repayment flexibility based on personal cash cycles. 

Investor behaviour is shifting as mutual fund holdings are now viewed as usable financial assets rather than locked investments. Loans against mutual funds allow investors to unlock value without altering long-term allocation plans. This trend reflects growing financial maturity and structured liquidity planning among fund holders.