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Understanding Loan-to-Value Ratios in Loan Against Mutual Funds
Loan-to-value ratios play a key role in Loan Against Mutual Funds, influencing borrowing limits and margin call risks during market fluctuations.
Loan to value ratios determine how much credit an investor can access against mutual fund holdings. Equity funds usually carry lower LTV limits compared to debt funds due to volatility. Understanding LTV is critical to avoid margin calls during market downturns. Conservative borrowing and maintaining buffers improve borrowing safety. Investors should factor LTV mechanics before opting for LAMF. Apply Now