If you need money for short term, then take cheap and easy loan instead of mutual fund, there will be many benefits

The personal loan is unsecured, hence the interest rate is high. In this case, secured loan can be taken. The interest rate for secured loans is low.

Apr 14, 2022 | 3:50 pm

Avoid taking a loan if you need money for short term. Instead, you can use your investment. If you take the loan, you will have to make repayment for a longer period. Apart from this, the interest rate will also be high. Apart from this, the financial burden on you will also be more. Financial experts say that you must prepare an emergency fund for yourself. It is considered most appropriate to use this fund when necessary.

If your emergency fund is not big enough to meet the requirement, then you are left with two options.  The first option is to take a loan.  Another option is to make immediate use of your investment.  Both have their advantages and disadvantages.  In such a situation, it is necessary to think seriously and deeply before reaching any decision.

If your emergency fund is not big enough to meet the requirement, then you are left with two options. The first option is to take a loan. Another option is to make immediate use of your investment. Both have their advantages and disadvantages. In such a situation, it is necessary to think seriously and deeply before reaching any decision.

Financial experts say that if your investment is giving low returns on an annual basis and the interest rate on the loan is high, then you can use that investment.  Debt funds can be redeemed if the interest rate on a debt fund is 5-6 per cent and the interest rate for the loan ranges from 11-12 per cent.

Financial experts say that if your investment is giving low returns on an annual basis and the interest rate on the loan is high, then you can use that investment. Debt funds can be redeemed if the interest rate on a debt fund is 5-6 per cent and the interest rate for the loan ranges from 11-12 per cent.

On the other hand, you have invested in an equity fund which has a return of 15 per cent per annum.  In this situation, it is more beneficial to take a loan than to redeem the investment.  Investments are made for a long period.  In this case, the investor also gets the benefit of compounding.  It is important to keep these things in mind before redeeming the investment.

On the other hand, you have invested in an equity fund which has a return of 15 per cent per annum. In this situation, it is more beneficial to take a loan than to redeem the investment. Investments are made for a long period. In this case, the investor also gets the benefit of compounding. It is important to keep these things in mind before redeeming the investment.

The personal loan is unsecured, hence the interest rate is high.  In this case, secured loan can be taken.  The interest rate for secured loans is low.  If you have invested in equity funds which have high average returns, then you can easily get a very cheap loan in return for it.  Another advantage of this will be that your investment will continue through SIP.  This will not affect your long term goals in any way.

The personal loan is unsecured, hence the interest rate is high. In this case, secured loan can be taken. The interest rate for secured loans is low. If you have invested in equity funds which have high average returns, then you can easily get a very cheap loan in return for it. Another advantage of this will be that your investment will continue through SIP. This will not affect your long term goals in any way.

If you are a mutual fund investor, you can get a cheap loan within minutes by pledging mutual fund units.  The units will be returned to you after the loan amount is repaid.  This is a great option for meeting short term money requirements.

If you are a mutual fund investor, you can get a cheap loan within minutes by pledging mutual fund units. The units will be returned to you after the loan amount is repaid. This is a great option for meeting short term money requirements.






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