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Borrowing Against Mutual Fund Holdings Gains Momentum Among Investors
Loan against mutual funds is emerging as a preferred borrowing option, allowing investors to raise funds at lower costs without redeeming investments, while banks actively scale LAMF offerings amid volatile markets.
Loan against mutual funds is gaining traction as investors seek liquidity without selling long term holdings. Market participants say rising portfolio sizes and volatile markets are pushing borrowers toward LAMF products. By pledging units, investors access lower interest rates than personal loans while retaining market exposure. Banks and NBFCs are expanding offerings, positioning LAMF as a flexible liquidity tool option.