Loan against mutual funds!

One can take a loan against one’s mutual fund investments. Under this option you can keep your equity and debt funds as collateral , and get instant credit at an interest rate which is much lower than that for unsecured personal loans or credit cards. The quantum of your loan will depend on the type of your mutual funds. So, while you can get about 70-80 percent of the value of your debt funds as a loan, in case of equity funds, you'll get about 50 percent. The advantage of taking a loan against your mutual funds is that you don’t have to sell your investments. The MF units remain invested and continue to earn market returns. You also avoid any capital gains taxes that may have been applicable had you sold your securities.