What is a Loan against Mutual Fund?

A loan against mutual funds is a financial product that allows you to use your mutual fund holdings as collateral to borrow money from banks or NBFCs. This way, you don’t have to sell your units and can keep your investments intact for long-term growth.

The biggest advantage of this loan is liquidity. It gives you quick access to cash without disturbing your investment plans. You can use the funds for emergencies, education, or any urgent financial needs, while still enjoying the potential market appreciation of your mutual fund portfolio.