When Taking a Loan Against Mutual Funds Makes Financial Sense

LAMF suits short-term liquidity needs when investors want to stay invested, especially during volatile markets, provided repayment visibility and risk discipline are maintained.

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When Taking a Loan Against Mutual Funds Makes Financial Sense

1 min read75 words
When Taking a Loan Against Mutual Funds Makes Financial Sense
LAMF suits short-term liquidity needs when investors want to stay invested, especially during volatile markets, provided repayment visibility and risk discipline are maintained.
A loan against mutual funds is most effective when investors need temporary liquidity but want to avoid selling long-term investments. Common scenarios include medical expenses, business cash flow gaps, or funding short-term opportunities during volatile markets. LAMF works well when the investor expects future income inflows that can be used to repay the loan. Since interest is charged only on the amount used, it provides flexibility compared to fixed EMIs of traditional loans. Apply Now
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