lordofw4rrior
New member
Hi! A couple of years ago I came across this instrument - loan against securities.
Lets say you have Mutual fund giving 12% p.a. returns. You can get a loan against this mutual fund at ~10-10.5% p.a. All gains your mutual funds make during the loan tenure will be yours and you'll just have to pay the ~10% interest without breaking your discipline/fund compounding.
The maximum benefit would be for Equity mutual funds. If anyone was ready to take a personal loan @ ~15%p.a., you might just consider loan against securities as free loan.
I came across a really nice video by Labour Law Advisor:
This video explains the working beautifully.
Lets say you have Mutual fund giving 12% p.a. returns. You can get a loan against this mutual fund at ~10-10.5% p.a. All gains your mutual funds make during the loan tenure will be yours and you'll just have to pay the ~10% interest without breaking your discipline/fund compounding.
The maximum benefit would be for Equity mutual funds. If anyone was ready to take a personal loan @ ~15%p.a., you might just consider loan against securities as free loan.
I came across a really nice video by Labour Law Advisor:
This video explains the working beautifully.