Need money for the short term A loan against a mutual fund is a quick and cheaper option Need money for the short term? Loan against a mutual fund is a quick and cheaper option: In case of a grave contingency, the fund requirement may exceed the amount kept in an emergency fund and one may not be left with any other option but either to liquidate his/her investments or to take a loan. However, liquidating investments abruptly may derail the fulfillment of long-term financial goals, while taking a loan involves interest payouts. So, one needs to make an informed decision on whether to take out the money invested for long-term goals or to take a loan. Liquidating investments vs taking loans The decision will depend on the earning prospect through an existing investment, vis a vis the rate of interest payable on a loan – apart from the fact the difficulty one may face in availing of a low-interest loan. So, in case you have a debt-oriented mutual fund (MF) scheme giving an ave...
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