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Use-Cases for Loan Against Mutual Funds in Financial Planning
LAMF assists in meeting short-term funding needs while safeguarding long-term investment objectives.
A loan against mutual funds is increasingly used by investors to handle temporary cash flow gaps without liquidating long-term holdings. Typical applications include education expenses, medical needs, or business working capital. The secured structure ensures lower interest rates and faster approval compared with unsecured borrowing. Borrowers benefit from continued market participation, though valuation drops may trigger margin calls. Prudent use of LAMF supports liquidity requirements while preserving long-term wealth creation goals.