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Portfolio Backed Borrowing Finds Favour as Investors Avoid Forced Redemptions
Rising market volatility is pushing investors toward loans against mutual funds, allowing them to access liquidity without selling investments or disrupting long term financial and tax planning strategies.
Loans against mutual funds are increasingly being used by investors to manage short term liquidity needs amid volatile markets. Instead of redeeming units and triggering tax liabilities, borrowers pledge their mutual fund holdings to raise funds. Lenders say faster disbursals, lower interest rates, and flexible repayment options are driving demand, especially among salaried professionals and high net worth individuals.