Preserve Growth, Access Liquidity: All About Loan Against Mutual Funds
Ever found yourself needing urgent cash but hesitated to sell your mutual fund investments due to good returns, tax considerations and fear of losing compounding?
That’s where Loan Against Mutual Funds (LAMF) steps in — your silent financial lifesaver.
What is LAMF?
LAMF lets you borrow money without selling your mutual funds. You simply pledge them to a bank or NBFC, and they give you a loan. Meanwhile, your investments stay intact and continue to grow as earlier.
It’s like eating your cake and having it too!
Why Choose LAMF?
- Stay on Track: Your long-term goals and SIPs remain untouched.
- Fast & Easy: Digital process, money in your account within less than 24 hours.
- Lower Interest Rates: Way more affordable than credit cards or personal loans.
- No Usage Limits: Medical bills, travel, or a home upgrade — it’s your call.
Real-Life Example:
Rekha has ₹6 lakhs in mutual funds accumulated for a Europe trip in 3 years. When a medical emergency arises, she borrows ₹1.5 lakhs through LAMF — loan in 24 hours, vacation fund still growing, and zero tax hit!
LAMF lets your money multitask — grow while being useful.
(Contributed by Abhilash Rana, Relationship Manager, HNI Desk, Hum Fauji Initiatives)
Beyond Numbers: Why Goal-Based Financial Planning Matters
Your salary comes in, bills go out, and you save a bit “just in case.” But is that enough?
Meet Alka. She was proud of saving 20% of her income every month. But when asked what for, she didn’t have an answer. That’s when it clicked—saving without a purpose felt like running on a treadmill and really going nowhere.
With guidance from a Financial Advisor at Hum Fauji Initiatives, she sat down, listed her goals: a house in 5 years, her child’s college in 15, and retirement at 55. Suddenly, her money had meaning. Her savings had direction.
That’s goal-based planning — turning your dreams into financial targets.
Ask Yourself:
- What are you saving for? (Kids’ college? Kids’ marriages? Dream home? Vacations?)
- How much will you need? (Adjust for inflation — a ₹50 lakh expense today may be ₹70 lakh in 5 years)
- When will you need it? (Timelines decide your investment plan)
Why It Works Better
- Keeps You Motivated – You’re saving for something, not just stashing money away.
- Manages Risk Smartly – Short-term and long-term goals need different strategies.
- Saves Tax – Use smart tools applicable in old as also new tax regimes
- Gives Peace of Mind – No more guessing if you’re ‘saving enough’.
At Hum Fauji Initiatives, we believe every rupee should serve a purpose. That’s why we follow a goal-based investment approach for all our clients. If your current investments aren’t clearly tied to specific goals, now’s the time.
If you’re an existing client, let your Relationship Manager know during your next portfolio review — she’ll map your goals and align your investments accordingly.
If not yet our client, time to make that smart move.
So, don’t just count your money. Target your dreams.
(Contributed by Gautam Arora, Relationship Manager, Team Vikrant, Hum Fauji Initiatives)
Smart Investing Isn’t Just About More—It’s About Better
In today’s world of endless investment choices, it’s easy to think success means doing more—more funds, more trades, more risk. But true financial wisdom lies in doing what truly matters.
- Invest with Purpose, Not Impulse
Start by asking: Why am I investing? Whether it’s for retirement, a child’s education, or a dream home—linking investments to personal goals brings clarity and control. - Quality Over Quantity
A well-curated portfolio of thoughtfully chosen funds across asset classes outperforms a scattered collection. It’s about building with conviction, not confusion. - Consistency is Powerful
Success rarely comes from chasing returns. It comes from discipline—regular SIPs, timely reviews, and steady rebalancing. - Risk Isn’t a Side Note—It’s the Foundation
Returns are important, but understanding risk is essential. The right mix of equity, debt, and liquidity helps your portfolio grow while keeping it grounded.
💡Conclusion
Smart investing isn’t about being everywhere—it’s about being where it matters. The power lies in thoughtful choices, not endless ones.
(Contributed by Ankit Kumar Singh, Relationship Manager, Team Prithvi, Hum Fauji Initiatives
What did our clients ask us in the last 7 days?
Question – I’ve received a mail from you regarding PMS (Portfolio Management Service). Why should I invest in it? Is it better than mutual funds? –
Answer – That’s a great question and one we often hear. Let us explain it this way:
Path 1: Mutual Funds – Easy to start, well-diversified, and ideal for all types of investors.
Path 2: PMS – Customised, exclusive, and designed for those with higher capital and appetite for risk.
Let’s walk through both, so you can choose what fits you best.
What Makes PMS Different?
Why Choose PMS?
PMS suits you if you:
- Are a high-net-worth investor,
- Prefer tailored strategies and direct stock ownership,
- Are open to higher risk for potentially higher returns.
Why Choose Mutual Funds?
Mutual Funds work if you:
- Want to start small and grow steadily,
- Prefer auto-diversification and professional management,
- Need flexibility, transparency, and liquidity.
Final Thoughts: It’s Not Either| Or
PMS and Mutual Funds are not rivals—they can complement each other.
If you have the capital, consider diversifying across both. PMS offers personalisation; mutual funds offer accessibility and ease. Your financial goals, risk appetite, and investment horizon should guide the choice.
We’re here to help you align your investments with your life. Let’s find the mix that works best for you.
(Contributed by Team Dhruv, Hum Fauji Initiatives)
💬 Let us know if you’d like to explore how PMS can fit into your overall investment strategy. We’re here to help.
