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Use Debt Mutual Funds for Lower Risk Borrowing
Pledging stable debt funds minimizes volatility-linked margin risks.
Borrowing against debt funds is safer because the collateral is less volatile. Banks offer higher Loan-to-Value ratios, sometimes up to 80% for debt funds. This is ideal for ultra-short-term liquidity needs where investors prefer stability. It turns stable assets into instantly accessible liquidity, providing a balance of safety and convenience for conservative investors seeking lower risk exposure.