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Risks in Loan Against Mutual Funds and How to Manage Them
LAMF carries market-linked risks, making conservative borrowing and monitoring essential for investors.
While Loan Against Mutual Funds offers liquidity, it carries risks such as margin calls during market downturns. Falling portfolio values may require borrowers to provide additional collateral or repay part of the loan. Financial planners recommend maintaining adequate buffers and avoiding maximum borrowing limits to manage volatility-related risks effectively.Apply Now