Take loan against MF only for genuine needs!

In my earlier post I mentioned about loan against MFs. Now the question is when should you consider taking such a loan? If you are a conservative investor, then it might be better to keep things simple and just liquidate your mutual funds if you have no other option. But if you have a reasonable risk appetite, and if you need money quickly for a short term, you can consider taking a loan against MFs. You will need to check which schemes / categories you have in your portfolio, as different fund categories have different LTV options. Please borrow only for genuine needs. It is tempting to borrow money against mutual funds in bull markets and invest it again in markets. This can backfire very badly if markets tank sharply.