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Wednesday, December 03, 2025 | 04:42 PM ISTहिंदी में पढें
Pledging mutual funds? Keep extra units handy to handle margin calls
Previously, availing these loans was a cumbersome physical process that took five-seven working days
 "Inflows into equity mutual funds (MFs) continued their strong momentum in July, despite the market volatility triggered by the Union Budget. Active MF schemes received Rs 37,113 crore, the second-highest monthly inflows ever, after attracting a recor")
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Market volatility can erode the value of pledged securities, triggering margin calls | Illustration: Binay Sinha
Loans against mutual funds (MFs) are gaining traction among retail investors, who now recognise the value of staying invested for the long term. Rather than redeeming MF units during a cash crunch, many are opting for loans against them.
Growing popularity
Previously, availing these loans was a cumbersome physical process that took five to seven working days. “Now, the loan is available digitally and you can avail it in a short while from your home or office,” says Krishna Kanhaiya, chief executive officer (CEO), Mirae Asset Financial Services.
Kanhaiya adds that the rise in systematic investment plan (SIP) contributions has
