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What Happens to Your Mutual Funds During a Market Fall Under LAMF
Market falls can trigger margin calls under LAMF, making conservative borrowing and active monitoring essential for investors.
Market corrections can impact the value of mutual fund units pledged under a Loan Against Mutual Funds (LAMF). As portfolio value declines, lenders reassess loan coverage, which may lead to margin calls if thresholds are breached. Investors who borrow conservatively and maintain buffers are better positioned to manage volatility. Understanding how collateral valuation works helps borrowers respond proactively during downturns.Apply Now