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The Economic Times

Personal Finance / The Economic Times

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Using mutual funds as collateral? Avoid these 5 errors before taking loan

Loans against mutual funds offer liquidity without redeeming investments, but require careful handling. Investors often overlook loan terms, valuation risks and repayment discipline. Comparing lenders and avoiding unnecessary borrowing are key to preventing financial strain while using mutual funds as collateral for short-term funding needs.

6 May 2026 12:42 pm