Pledging mutual funds? Keep extra units handy to handle margin calls
Last Update Date: 06-10-2026
Published by Business Standard
Abhishek Kumar's role: Quoted
Abhishek Kumar said these loans can suit investors facing short-term emergencies or cash crunches, suggested keeping extra units or cash ready for margin calls, warned against using them for impulse buys, and advised keeping an emergency fund.
More of Abhishek's views on mutual funds
The article covers the growing use of loans against mutual fund units, which let investors raise cash without redeeming. It explains interest costs, overdraft-style facilities and the risk of margin calls when markets fall, and lists checks on lenders, loan-to-value limits and eligible schemes.
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Pledging mutual funds? Keep extra units handy to handle margin calls