Why Does Loan Against Mutual Funds Make Sense?
Instead of waiting for lengthy approval processes or dealing with the hassle of selling assets, getting into the value of your mutual fund investments allows you to access cash almost instantly. This gives a sense of security and peace of mind in times of financial need, without having to disrupt your long-term investment goals. Taking […]
What is an Expense Ratio: Meaning, Calculation and Importance
When talking about Mutual Funds’ Investments, one of the most important factors to consider is the Expense Ratio on Mutual Funds. This ratio decides how much you will pay for a particular period for your own fund. Since it pays for your management fund or associated costs, it will eventually have an important effect on […]
Margin Call: What is it, Triggers, Covers, and How to Avoid?
When you take out a Loan on Mutual Funds, what happens if the value of your portfolio decreases due to market volatility? Does this affect your Loan-to-Value (LTV) Ratio? If yes, how does the borrower manage this situation? As people dig into the intricacies of effective financial planning, understanding Margin Calls becomes an essence to […]
How Does Loan Against Mutual Funds Work?
Unexpected expenses can often throw a wrench into our carefully laid-out strategies. As diligent investors, we understand the importance of preserving our assets while also ensuring we have access to funds when needed. This is where Loan Against Mutual Funds (LAMF) shines – a sophisticated solution blending financial prudence with accessibility. In today’s dynamic financial […]
How Does NAV Impact Your Eligibility for Mutual Funds Loans?
Have you ever wondered how the value of your mutual fund affects your loan options? The higher NAV of your mutual fund, the better loans you can get. This is similar to the market value of your property fluctuating, the higher the value, the more monetary power. But first, let’s understand what NAV is. If […]
Loan Against Mutual Funds or Redemption: Which is better?
Imagine this: You are in a tight spot, urgently needing funds. Borrowing from family or friends isn’t an option, but fortunately, your investments in Mutual Funds have grown, providing you with a financial lifeline. Now, you’re faced with a dilemma: cash out your assets or leverage them for a quick loan against Mutual Funds. Option […]
