loan against mutual funds Archives - Shareloan https://shareloan.in/blog/tag/loan-against-mutual-funds/ Beta Mon, 27 Feb 2023 12:14:18 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.5 214831600 TOP MUTUAL FUNDS TO BUY FOR MAXIMUM LOAN AGAINST MUTUAL FUNDS https://shareloan.in/blog/2022/06/14/53/ https://shareloan.in/blog/2022/06/14/53/#respond Tue, 14 Jun 2022 10:53:59 +0000 https://shareloan.in/blog/?p=53 A Bluechip mutual fund or large-cap mutual fund invests only in large cap companies (Referred in our previous blog). These mutual funds are fundamentally and financially strong and stable due…

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]]> A Bluechip mutual fund or large-cap mutual fund invests only in large cap companies (Referred in our previous blog). These mutual funds are fundamentally and financially strong and stable due to their strong portfolio. Blue-chip funds can assist investors to get medium-risk capital appreciation by remaining invested for the long term. Bluechip funds might be a fantastic alternative if you want to avail Loan against Mutual funds from www.shareloan.in in the time of need.

These categories of funds are very safe and one can assume that he/she is investing in blue-chip shares only. A few examples of these funds are mentioned below. Large-cap mutual funds have to invest at least 80% of their corpus in large-cap stocks only.

Top Large/Blue-chip Mutual Funds

  • AXIS BLUECHIP FUND
  • KOTAK BLUECHIP FUND
  • HDFC TOP 100 FUND
  • MIRAE ASSET LARGECAP FUND
  • SBI BLUECHIP FUND
  • NIPPON INDIA LARGECAP FUND

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]]> https://shareloan.in/blog/2022/06/14/53/feed/ 0 53 Is it possible to take a loan against shares from a bank? https://shareloan.in/blog/2022/04/27/is-it-possible-to-take-a-loan-against-shares-from-a-bank/ https://shareloan.in/blog/2022/04/27/is-it-possible-to-take-a-loan-against-shares-from-a-bank/#respond Wed, 27 Apr 2022 12:19:45 +0000 https://shareloan.in/blog/?p=30 Yes , Loan Against Shares and Loan Against Mutual funds can be applied without selling portfolios of bonds, deposits, equity shares and mutual funds. When faced with an unexpected requirement, they feel unsure about…

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]]> Yes , Loan Against Shares and Loan Against Mutual funds can be applied without selling portfolios of bonds, deposits, equity shares and mutual funds. When faced with an unexpected requirement, they feel unsure about whether to raise funds or liquidate investments. They are also worried about rebuilding the asset. Loan against securities (LAS), a facility offered by banks and non-banking finance companies, can serve as a good alternative .

Collateral
Banks provide a complete list of approved securities against which they are willing to offer a loan. A lien is created against these securities in order for the loan to be taken. The value of loan is a percentage of the value of the securities, which can be anywhere between 70% (for equity shares), 90% (for bank deposits) & 60–70% (for mutual funds) , Approved Bonds (85%) .

Process
A current account with overdraft facility is opened and a borrowing limit is set based on the value of the collaterals. Investors can withdraw from the account whenever they choose, and can repay it by depositing the amount back into the current account. The process is simpler and more flexible than that of an EMI-based loan.

Interest
The interest rate on an LAS is lower than that of a personal loan or a credit card, since it is secured by collateral. Interest is charged monthly, quarterly , semi annually or yearly (Depending on client) , on the basis of the daily outstanding balance in the overdraft account.

Flexibility

Once the limit is sanctioned based on the value of the collateral loan amount is directly transferred to bank account which client can withdraw from ATM aswell or Cheque .Repayment can be made based on cash inflows at any time or Shares pledged can be changed or increased/decreased anytime from any scrip category to another and after payment or early loan share pledged can be removed in few days .

The minimum amount of a loan against shares/securities is 10 lakh while the maximum amount that can be arranged is more than 100–200 Crore .

 

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