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Mutual Fund Pledging Emerges as Alternative to Costly Short Term Loans
Loans against mutual funds are gaining popularity as investors look for lower cost borrowing options that preserve long term investments while offering quick access to liquidity.
Investors are increasingly opting for loans against mutual funds to meet short term cash needs without liquidating portfolios. Financial institutions say the product is seeing higher adoption due to competitive interest rates and faster processing. By pledging equity or debt fund units, borrowers retain investment exposure while accessing liquidity, making LAMF a practical option during uncertain market conditions.