A Loan Against Mutual Funds (LAMF) offers a convenient way to meet urgent financial needs without liquidating your investments. It allows you to unlock the value of your mutual fund portfolio and access funds while continuing to benefit from market growth. This solution is ideal for individuals who require short-term liquidity for personal or business purposes and prefer to retain their long-term investment holdings.
The process is simple and quick—by pledging your mutual fund units, you can get access to a line of credit or a lump-sum loan, often at interest rates that are lower than unsecured loans. It is a flexible solution where the loan amount is determined based on the type and value of your mutual fund holdings, whether in equity or debt schemes.
One of the key advantages is that your investments continue to remain in your name, and you can still benefit from dividends or capital appreciation during the tenure of the loan. There's no need to disrupt your wealth creation journey when temporary financial support is required. You only pay interest on the amount utilized, making it a cost-efficient borrowing option.
Whether it's for managing business cash flows, funding education, or handling medical expenses, a Loan Against Mutual Funds offers timely access to funds with minimal paperwork and faster approvals. It’s a smart way to stay invested while gaining financial flexibility.
