Is Loan Against Mutual Funds suitable for conservative investors?

Loan Against Mutual Funds can suit conservative investors when used carefully for short-term liquidity without disturbing stable portfolios.

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Is Loan Against Mutual Funds suitable for conservative investors?

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Is Loan Against Mutual Funds suitable for conservative investors?
Loan Against Mutual Funds can suit conservative investors when used carefully for short-term liquidity without disturbing stable portfolios.
Conservative investors typically prioritise capital protection and steady growth over aggressive returns. Loan Against Mutual Funds can suit such investors when used cautiously for short term liquidity needs. Instead of selling low volatility debt or hybrid mutual funds, investors can pledge them to raise funds while keeping investments intact. This approach avoids unnecessary portfolio churn and maintains stability. However, conservative investors must closely monitor loan to value ratios and repayment schedules to minimise risk. Apply Now
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