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Risks to understand before taking Loan Against Mutual Funds
LAMF requires monitoring market movements and managing margin risks carefully.
While Loan Against Mutual Funds provides flexibility and it involves certain risks. Market declines can lower collateral value and trigger margin calls. If not addressed, lenders may sell units to recover dues. Interest costs also rise if borrowing continues long term. Investors should track portfolio value regularly and borrow conservatively. To understand margin rules, safeguards, and risk management practices clearly.Apply Now