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Equity vs Debt Funds as LAMF Collateral: Which Is More Stable?
Avoid penalties or lost interest by borrowing instead of breaking deposits.
Debt funds are significantly more stable, offering 75–85% LTV compared to Equity’s 50%. While Equity offers growth, Debt provides a "Stable Credit Base." In a market crash, Debt fund NAVs rarely move more than 1–2%, ensuring your loan limit remains intact. For a ₹10 Lakh loan, pledging ₹13 Lakh of Debt funds is safer than pledging ₹20 Lakh of Equity funds.