Understanding Loan-to-Value Ratios in Loan Against Mutual Funds

Loan to value ratios play a central role in determining how much investors can borrow under a Loan Against Mutual Funds (LAMF). The LTV represents the percentage of a mutual fund’s value that lenders are willing to finance, with equity funds typically carrying lower ratios than debt funds. Conservative LTV limits help manage downside risk during market corrections. Borrowers who utilise only a portion of their eligible limit reduce the likelihood of margin calls. Apply Now