Key Points
Selling units of hybrid mutual funds, especially during a bull market, may mean missing out on potential long-term compounding benefits and the higher returns that equity exposure can offer, says Vir...
For hybrid mutual funds, its generally better to remain invested to capitalise on the compounding effect and the potential higher returns from the equity component, rather than selling the units prematurely..
If the interest rate on a loan against your debt mutual funds is lower than the expected returns from these funds, opting for a loan can be financially sensible..
Many lenders modern fintech companies and traditional banks and NBFCs provide overdraft loans against mutual funds, says Rohit Pateria, Co-founder, Lark Finserv...
In the case of equity mutual funds, you can typically get up to 50% of your fund value as a loan; it can go up to 80-85% in case of debt funds or FMPs..
