Digital Loan against Mutual Fund: How to use your investment to raise money without selling it

You now have a simple way to raise money using your Mutual Fund investment and without selling it - utilize it to take a loan.

As an investor the last thing you want to do is liquidate your investments but you may sometimes need funds – for a medical emergency, wedding or a big-ticket expense. You may consider selling your carefully accumulated portfolio but that may not be the best idea for many reasons:

  • The timing may be wrong: Emergencies are unexpected. What if you need money when the markets are on a temporary low? You may end up selling your funds at a lower price than you could have got in a few days or months.
  • Your goals are still not achieved: You have created a portfolio of funds to fulfil some financial or life goals and have invested with a time horizon in mind. Selling it prematurely will set you back on your goals.
  • Your portfolio is currently earning good returns, and for the future: Your current portfolio is earning good returns. It also projects a good return in the future. In the event you liquidate your asset right now, you stand a chance to lose out on opportunities to earn in the future.
  • You don’t get funds instantly: Even if you choose to redeem, you may have to wait 2 to 3 days for the funds to hit your account. In an emergency, you may not be able to wait that long.

So, instead of selling your Mutual Fund investment, here’s a better choice. Take a Digital Loan against Mutual Fund.

HDFC Bank now offers Digital Loans against Mutual Funds in partnership with transfer agent CAMS, through its Loan against Securitiesofferings. You can raise funds instantly by pledging Mutual Funds from your CAMS portfolio.

You can complete the entire process in minutes online when by  applying for Loan against Mutual Funds here.

Once you complete the online application, the funds are instantly available in your account via an overdraft facility. No waiting. No paperwork.

Read our detailed article to know more about the product and how to get it.

* Terms and Conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.

Digital Loan Against Mutual Fund: How To Use Your Investment To Raise Money Without Selling It