Published : 27 September 2023
By : Sachin Gupta
This may not be viable for everyone as you have to surrender your funds as collateral to get capital.
Some lenders offer this service where you can borrow money but your investment will be locked in for that period and you cannot sell your mutual funds during that period.
This may vary based on the specific needs. If you need a large fund, you can consider selling one of your mutual funds.
However, do not forget to account for LTCG or STCG. Also, make a plan to accumulate the lost sum by opening a new MF in the near future.
If you need an emergency fund but the amount is not too significant, instead of selling the entire fund, withdraw a few units.
This will ensure your remaining funds grow and you can always increase the SIP amount or start a new fund in the future to cover up the withdrawal sum.
Note that it is better to have an actual emergency fund in place to avoid selling mutual funds meant for your long-term goals.