For short-term liquidity, pledging units via a Loan Against Mutual Funds can preserve compounding while unlocking cash. Redemption forfeits future growth and may trigger capital-gains tax per category/holding period. LAMF typically offers 50–80% loan-to-value and about 9–12% annual interest; meanwhile, invested units can continue earning market-linked returns (not guaranteed). Early redemptions may attract 0.5–1% exit loads. Choose redemption for permanent cash needs, deleveraging, or bearish outlooks. Prefer LAMF for emergencies, bridge funding, or tactically avoiding taxable sales during bull phases.