Can pledged mutual fund units continue earning returns?

Yes. Pledged units remain invested in chosen schemes and continue generating returns based on fund performance. Pledging creates a lien without affecting the investment's growth potential.

Will unlocking portfolio value trigger capital gains tax?

No. Pledging mutual funds does not create a taxable event. Capital gains tax is applicable only when units are redeemed or sold.

How quickly can funds become available?

Most digital lending platforms disburse funds within 24 hours after successful pledge creation, subject to eKYC completion and AMC processing.

What is a Loan Against Mutual Funds (LAMF)?

A Loan Against Mutual Funds is a secured loan where investors pledge eligible mutual fund units as collateral to access liquidity without redeeming their investments.

Which mutual funds are commonly accepted for LAMF?

Liquid funds, large-cap equity funds, debt funds with stable NAVs, and balanced advantage funds are commonly accepted depending on lender eligibility criteria.

Loan Against Mutual Fund Portfolio: Unlock Your Hidden Value

Home > Blogs > Loan Against Mutual Fund Portfolio: Unlock Your Hidden Value

Liquify | Thursday, June 11th, 2026, 3:04:46 PM

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