Avoid Premature Redemption – Choose a Loan Against Mutual Funds Instead

Manyasharma0121 Feb, 2025Finance

Selling mutual fund units prematurely can disrupt investment goals and lead to tax implications. A Loan Against Mutual Funds helps investors access funds without liquidating their assets. Borrowers can use their mutual fund holdings as collateral and continue earning returns on them while utilizing the borrowed amount for financial needs. This approach ensures liquidity without sacrificing potential capital appreciation, making it an ideal choice for short-term funding.