Understanding LTV Ratio in Loan Against Mutual Funds

Explaining LTV ratios in LAMF borrowing.

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Understanding LTV Ratio in Loan Against Mutual Funds

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Understanding LTV Ratio in Loan Against Mutual Funds
Explaining LTV ratios in LAMF borrowing.
The Loan to Value ratio determines the maximum loan amount investors can receive against pledged mutual fund units. Equity oriented schemes usually have lower LTV limits compared to debt funds because of higher market volatility and price fluctuations. Understanding margin requirements,valuation changes, and potential top up obligations is essential before borrowing. Evaluating these factors helps investors manage risk effectively while using LAMF facilities.Apply Now
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