Loan Against Mutual Funds (LAMF)
Loan Against Mutual Funds (LAMF) allows investors to access short-term liquidity by borrowing against their existing mutual fund holdings—without redeeming those investments. Instead of selling units and disrupting long-term wealth plans, investors can meet immediate cash needs while keeping their portfolio intact and compounding. In a market where liquidity requirements often arise unexpectedly—medical emergencies, business opportunities, bridge financing—LAMF has emerged as a smarter alternative to redemption, especially for long-term investors who want to avoid tax impact, market timing risk, and AUM erosion.
Liquidity needs often arise unexpectedly—be it for a medical emergency, business opportunity, education, or travel. Traditionally, investors redeem their mutual funds, interrupting growth, triggering capital gains tax, and affecting long-term wealth plans. Loan Against Mutual Funds (LAMF) changes this by allowing investors to borrow up to 75% of their mutual fund value—quickly and effortlessly. Funds are credited within hours, helping meet short-term needs while keeping investments intact and compounding.
How LAMF Works?
The investor pledges eligible mutual fund units as collateral.
A loan amount (up to a defined percentage of portfolio value) is sanctioned.
Units remain invested but are temporarily lien-marked and non-redeemable.
Loan proceeds are credited quickly, often within hours.
The investor can repay partially or fully at any time.
On repayment, the lien is removed and units become freely redeemable again.
