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Best Mutual Funds for Loan Against Mutual Funds
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Debt funds provide higher LTV (70–80%) than equities; ELSS funds remain restricted during lock-in, and lenders prefer high-AUM, stable-performing schemes for LAMF eligibility.
Not every scheme qualifies for a Loan Against Mutual Funds. Equity categories like large-cap, mid-cap, and flexi-cap usually allow 50–60% loan-to-value (LTV), while debt options such as liquid, corporate bond, and government securities funds offer 70–80% due to lower volatility. Hybrid portfolios typically receive 55–70% LTV. ELSS plans under Section 80C remain ineligible during the lock-in period. Both index and actively managed funds qualify if they meet liquidity norms. Lenders prioritize schemes exceeding ₹500 crore AUM with consistent performance records.