LAMF Explained: What Investors Should Know About Collateral and Risk

LAMF lets investors borrow against pledged mutual fund units while retaining investment returns, but requires monitoring market value and loan-to-value changes.

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LAMF Explained: What Investors Should Know About Collateral and Risk

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LAMF Explained: What Investors Should Know About Collateral and Risk
LAMF lets investors borrow against pledged mutual fund units while retaining investment returns, but requires monitoring market value and loan-to-value changes.
Loan Against Mutual Funds is a secured financing route where mutual fund units serve as collateral, enabling investors to borrow without selling assets. Lenders mark a lien on the pledged units, and those units continue to remain invested and capable of earning returns. The loan to value percentage typically depends on fund type and market value, with lenders adjusting limits to manage risk. Apply Now
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