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Loan Against Mutual Funds vs Selling Units During Market Volatility
During volatile markets, loan against mutual funds helps investors raise liquidity without selling units, preserving portfolio continuity while managing short-term funding requirements.
Market volatility often puts investors in a dilemma when immediate liquidity is required. Selling mutual fund units during corrections can lock in losses and disrupt long term financial plans. A loan against mutual funds offers an alternative by allowing investors to borrow against existing holdings without exiting the market. This approach helps maintain exposure to potential recovery while addressing short-term cash needs. However, borrowers must account for market linked risks, as sharp declines can reduce collateral value and trigger margin calls. Apply Now