Loan against MFs: Opt if portfolio growth set to outpace loan rate
Last Update Date: 06-10-2026
Published by Business Standard
Abhishek Kumar's role: Quoted
Abhishek Kumar cautioned that borrowers must be able to pledge more collateral if the lender asks for it, and suggested keeping an emergency fund so that such a loan is not needed.
More of Abhishek's views on debt and loans
The article explains how a loan against mutual fund units works, including loan-to-value limits for equity and debt funds, interest costs, overdraft-style withdrawals and the margin calls that follow a fall in fund values. It suggests weighing the loan rate against expected portfolio growth before borrowing.
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Loan against MFs: Opt if portfolio growth set to outpace loan rate