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Market Volatility Highlights Importance of Risk Monitoring in LAMF Usage
Experts stress careful monitoring of loan-to-value ratios in Loan Against Mutual Funds to manage risks arising from market volatility.
As more investors adopt Loan Against Mutual Funds for short-term liquidity, financial experts are emphasizing the importance of active risk monitoring. Since LAMF credit limits are linked to the net asset value of pledged mutual fund units, sharp market corrections can reduce available limits or trigger margin calls. Advisors recommend maintaining sufficient buffer between utilisation and sanctioned limits to avoid forced liquidation. Apply Now