FinEzzy logo

From Investment to Instant Cash: Transforming Your Mutual Funds 

Credit Card vs Loan Agaisnt Mutual Funds

Are you tired of waiting for your mutual funds to mature before reaping the benefits? What if your investments can instantly turn into cash at your convenience, ready to be used for any requirement?  

Enter Loan Against Mutual Funds. This financing tool allows you to leverage your investments without selling them, providing you with quick access to funds when needed most. Mutual funds have always been a popular investment option, offering individuals the opportunity to grow their wealth over time. However, what many may not realize is that mutual funds can also serve as a valuable resource for accessing instant cash when needed. Get ready to discover a whole new way of managing and maximizing your financial portfolio! 

Understanding Loan Against Mutual Funds 

Loan Against Mutual Funds, often abbreviated as LAMF, is a financial product that allows individuals to borrow money from financial institutions by pledging their mutual fund holdings as collateral. Instead of selling off their investments, which may imply taxes and penalties, individuals can leverage their mutual fund units to secure a loan quickly and conveniently. This opens a world of possibilities, allowing investors to get the value of their mutual funds without disrupting their long-term investment goals. 

Key Benefits of Loan Against Mutual Funds 

  1. Immediate Access to Funds: 
  • Allows individuals to access instant cash without selling their mutual fund investments. 
  • Provides financial flexibility during emergencies or urgent financial needs. 
  1. Preservation of Investment Portfolio: 
  • Retains ownership of mutual fund holdings while accessing funds. 
  • Ensures that the long-term growth potential of the investment portfolio remains intact. 
  1. Lower Interest Rates: 
  • Typically offers lower interest rates compared to other forms of unsecured borrowing. 
  • Provides a cost-effective solution for managing short-term financial needs. 
  1. Flexible Repayment Options: 
  • Offers repayment flexibility, allowing borrowers to choose from various repayment terms. 
  • Customized repayment plans to individual financial situations and preferences. 
  1. Minimal Documentation and Hassle-Free Process: 
  • Streamlined application process with minimal documentation requirements. 
  • Provides a hassle-free borrowing experience for individuals in need of quick cash. 

Steps to Transform Mutual Funds into Instant Cash 

  1. Assess Your Financial Needs: 
  • Evaluate your financial situation and determine the amount of cash you require. 
  • Identify the mutual fund holdings that you can pledge as collateral for the loan. 
  1. Explore Loan Terms and Conditions: 
  • Research different lenders and compare their loan terms, interest rates, and repayment options. 
  • Choose a lender that offers favorable terms and aligns with your financial goals. 
  1. Apply for the Loan: 
  • Reach out to FinEzzy, a trusted financial platform, to explore loan options against your mutual funds. 
  • Provide details about your mutual fund holdings and financial situation to determine eligibility. 
  1. Pledge Your Mutual Fund Holdings: 
  • Pledge a certain percentage of your mutual fund holdings as collateral for the loan. 
  • Await approval of the loan application from FinEzzy. 
  1. Access Instant Cash: 
  • Once approved, the loan amount will be disbursed directly into your bank account in just 15 minutes. 
  • Utilize the disbursed funds immediately to address your financial needs or emergencies. 


So, there you have it – the journey from investment to instant cash through loan against mutual funds is indeed a game-changer. It’s like having a financial safety net that you can tap into when needed, without disrupting your long-term investment goals. This option provides the flexibility and convenience that many investors crave, offering a quick and efficient way to access funds without liquidating their holdings. 

Moreover, taking a loan against your mutual funds can also be seen as a strategic move in times of need, allowing you to leverage your existing assets for immediate requirements while keeping your investments intact. It’s a smart way to unlock the value of your portfolio without losing out on the potential returns in the future. So, next time you’re in urgent need of cash, consider exploring this innovative solution that bridges the gap between investments and liquidity easily. 

-Sneha Adhikari

Frequently asked questions

All investments have some risk. But mutual funds try to reduce risk by investing in many different things. So, if one thing doesn’t do well, the other might make up for it.

We tailor our advice and suggestions to your needs. If wealth management is your goal, our algorithms go through millions of data points to come up with suggestions that sit perfectly with your risk appetite, existing financial goals and the prevailing market conditions. If you are interested in credit, we address the need while also ensuring you do not compromise on your broader financial goals.

Most mutual funds let you take out your money when you want. But some might have rules or charges if you take it out too soon.

To start, you can talk to a bank or a financial advisor. They can guide you on how to put your money in a mutual fund.

Yes, there might be some charges. These are for managing the fund and other services. It’s good to ask about these before you invest.

No, you don’t need a lot of money. Many mutual funds allow you to start with a small amount as low as INR 500.