Understanding LTV Ratios in Loan Against Mutual Funds

LTV ratios in LAMF vary by fund type and play a critical role in managing borrowing risk.

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Understanding LTV Ratios in Loan Against Mutual Funds

1 min read54 words
Understanding LTV Ratios in Loan Against Mutual Funds
LTV ratios in LAMF vary by fund type and play a critical role in managing borrowing risk.
Loan to Value ratios determine how much an investor can borrow against mutual fund holdings. Equity oriented schemes usually attract lower LTV ratios due to higher volatility, while debt funds offer relatively higher limits. Market participants highlight that conservative borrowing below maximum LTV thresholds helps reduce margin call risks during market corrections.Apply Now  
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