neutral
2h agoLoan against mutual funds emerges as alternative to personal loans for investors
Investors in India are increasingly turning to loans against their mutual-fund holdings rather than redeeming them to meet short-term liquidity needs. Platforms offer up to 50 % of net asset value (NAV) for equity funds and up to 80 % for debt funds. Borrowers continue earning returns on pledged units and pay interest only on the drawn amount. Financial advisers caution that market-value drops could trigger margin calls or forced sales.
The mechanism highlights evolving secured-credit options in wealth management.
Discvr• By Pooja Kumari
Explore:Mutual Fund Screening
neutral
2h agoLoan against mutual funds emerges as alternative to personal loans for investors
Investors in India are increasingly turning to loans against their mutual-fund holdings rather than redeeming them to meet short-term liquidity needs. Platforms offer up to 50 % of net asset value (NAV) for equity funds and up to 80 % for debt funds. Borrowers continue earning returns on pledged units and pay interest only on the drawn amount. Financial advisers caution that market-value drops could trigger margin calls or forced sales.
The mechanism highlights evolving secured-credit options in wealth management.
Discvr• By Pooja Kumari
Explore:Mutual Fund Screening
about 3 hours ago
1 min read
79 words
Loans against mutual-fund holdings provide investors liquidity while retaining units, with LTVs of up to 80 % for debt funds and risk of margin events.
Investors in India are increasingly turning to loans against their mutual-fund holdings rather than redeeming them to meet short-term liquidity needs. Platforms offer up to 50 % of net asset value (NAV) for equity funds and up to 80 % for debt funds. Borrowers continue earning returns on pledged units and pay interest only on the drawn amount. Financial advisers caution that market-value drops could trigger margin calls or forced sales.
The mechanism highlights evolving secured-credit options in wealth management.
Investors in India are increasingly turning to loans against their mutual-fund holdings rather than redeeming them to meet short-term liquidity needs. Platforms offer up to 50 % of net asset value (NAV) for equity funds and up to 80 % for debt funds. Borrowers continue earning returns on pledged units and pay interest only on the drawn amount. Financial advisers caution that market-value drops could trigger margin calls or forced sales.
The mechanism highlights evolving secured-credit options in wealth management.
Tags:
mutual_funds
loan against mutual funds
mutual_funds
loan against mutual funds
secured lending
investment strategy
india
Nov 11, 2025 • 07:32 IST