neutral
Recently
Mutual Fund–Linked Borrowing Sees Rising Adoption Among Retail Investors
Loan against mutual funds is seeing rising adoption as investors prioritise liquidity without selling assets, benefiting from lower borrowing costs, tax efficiency, and faster digital processing offered by banks and NBFCs.
Loan against mutual funds is becoming a preferred borrowing option as investors look to unlock liquidity without redeeming units. Financial advisers say the product helps avoid capital gains taxes while offering lower interest rates than personal loans. With seamless digital pledging and faster disbursals, lenders report steady growth in LAMF usage across salaried and self employed segments.