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Reduce Opportunity Cost When Cash Is Urgently Required
Borrowing helps avoid missing market recoveries that could follow premature investment redemption.
Selling a fund that is about to rally creates a massive "opportunity cost." Borrowing allows you to meet cash needs while keeping the upside potential. If the fund grows by 15% and the loan costs 10.5%, you have effectively "earned" 4.5% on borrowed money while solving your liquidity problem.This arbitrage is a key reason why sophisticated investors rarely redeem their best-performing units prematurely. Apply Now