Distributors buy into 'loans against MFs' idea amid market slide
Lenders report a significant rise in demand for loans against mutual funds in recent months.
Mutual fund distributors, who were previously hesitant about clients borrowing against their holdings, are now recommending this option in times of a cash crunch rather than redeeming investments. This approach helps them retain their AUM while ensuring investors don’t miss out on long-term market growth.
