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Loan Against Mutual Funds: How Investors Can Access Liquidity Without Selling
Loan against mutual funds enables investors to raise funds without selling holdings, offering liquidity while staying invested, subject to LTV limits and market-linked risks.
A loan against mutual funds allows investors to borrow money by pledging their existing mutual fund units as collateral instead of selling them. The lender places a lien on the pledged units while the investor continues to remain invested in the market. This structure helps investors meet short-term liquidity needs without disrupting long-term financial goals.
Typically, lenders offer loans based on a loan to value ratio, usually ranging between 50% and 70% depending on the fund type. Apply Now