Why Loan Against Mutual Funds is Better Than Personal Loans When faced with urgent financial needs—whether it is medical expenses, education fees, travel plans, or business requirements—most people think of personal loans as the go-to solution. Banks and financial institutions aggressively market personal loans as a quick and convenient way to get funds. However, what many investors overlook is that if you already have mutual fund investments, you can unlock liquidity without disturbing your portfolio through a Loan Against Mutual Funds (LAMF) . In simple words, a Loan Against Mutual Funds allows you to pledge your existing holdings and borrow money against them. Unlike personal loans, you don’t need to liquidate your investments, and you can still enjoy the benefits of compounding returns. Let us explore why this option is not only smarter but also more cost-effective compared to traditional personal loans. 1. Lower Interest Rates One of the biggest disadvantages of persona...
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