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When Not to Use Loan Against Mutual Funds
LAMF may be unsuitable for speculative use or unstable portfolios, requiring disciplined repayment planning and awareness of market-linked risks.
Despite its benefits, Loan Against Mutual Funds may not be suitable for every situation. Investors with short investment horizons or highly volatile portfolios face higher risk of margin calls. Using LAMF for speculative purposes can increase financial stress during market downturns. Borrowers without clear repayment plans may find costs accumulating over time. Financial advisors recommend LAMF only for disciplined investors with stable portfolios and defined liquidity needs. Apply Now