PuneinvestPuneinvest
  • Home
  • Mutual Fund
  • Form Download
  • BNPL
  • Mediclaim
  • Post Office
Reading: Volt Money Loan Against Mutual Fund Review
Share
Aa
PuneinvestPuneinvest
Aa
  • Mutual Fund
  • Financial Planning
  • SIP Cancellation
  • Post Office Saving
Search
  • Mutual Fund
  • Financial Planning
  • SIP Cancellation
  • Post Office Saving
© PuneInvest 2023. All Rights Reserved.
Puneinvest > Blog > Mutual Fund > Volt Money Loan Against Mutual Fund Review
Mutual Fund

Volt Money Loan Against Mutual Fund Review

Last updated: 2023/08/01 at 10:41 PM
Rajendra Todkar Published August 1, 2023
Share

Volt Money Loan Against Mutual Fund (LAMF) product offers an innovative and flexible solution, allowing investor to leverage their mutual fund investments without selling them. In this article, we will review the Volt Money Loan Against Mutual Fund service, exploring its features, benefits, and potential considerations for users.

Key Features:

  1. Easy Online Process:
    Volt Money's platform provides a hassle-free online application process, eliminating the need for extensive paperwork and long processing times. Users can conveniently apply for a loan against their mutual funds from the comfort of their homes.
  2. Instant Loan Disbursement:
    One of the standout features of Volt Money's LAMF service is its quick loan disbursement process. Upon approval, borrowers can expect funds to be credited to their accounts promptly, enabling them to address their financial needs without delays.
  3. No Credit Checks:
    If the value of the collateral you are offering is greater than the loan amount requested, there is no need for a credit check. Secured loans are generally considered low risk in such cases.
  4. Competitive Interest Rates:
    Volt Money offers competitive interest rates on its Loan Against Mutual Fund product, making it a cost-effective alternative to other forms of borrowing.
  5. Flexible Repayment Options:
    Borrowers can choose from various tenure options to suit their financial capabilities and can repay the loan through convenient EMIs (Equated Monthly Installments).

Benefits:

  1. Retention of Mutual Fund Investments:
    Perhaps the most significant advantage of availing a Loan Against Mutual Fund is that investor can retain their long-term investments and continue to benefit from potential market growth.
  2. Lower Interest Costs:
    Compared to traditional loans and credit cards, which often come with higher interest rates, Volt Money's LAMF offers more favorable terms.
  3. Quick Access to Funds:
    In times of urgent financial requirements, Volt Money's LAMF provides a swift solution.
  4. No Prepayment Charges:
    Volt Money's Loan Against Mutual Fund typically does not carry prepayment charges. This means borrowers can choose to repay the loan ahead of schedule without incurring additional costs, potentially reducing the overall interest burden.

Disadvantage

  1. Risk of Margin Calls:
    While pledging mutual fund units as collateral can be advantageous, borrowers must be mindful of market fluctuations. If the value of the mutual fund units drops significantly, the borrower may face a margin call, requiring additional collateral or loan repayment.
  2. Potential Impact on Investment Returns:
    Using LAMF may impact the overall returns of the mutual fund investment. Borrowers should carefully assess the cost of borrowing against potential returns on the mutual fund units before availing the loan.
  3. Loan Eligibility Criteria:
    While Volt Money's Loan Against Mutual Fund may not require a credit check, borrowers must meet specific eligibility criteria, including minimum investment tenure, mutual fund type, and scheme selection.

Conclusion:

Volt Money's Loan Against Mutual Fund is an attractive financial product that offers convenience, flexibility, and quick access to funds without the need to liquidate mutual fund investments.

It is essential to maintain a margin of safety in case of a market downturn. If the market falls and you are unable to pay the required margin amount, the company may liquidate your mutual fund units.

- Advertisement -

If your mutual fund units have already generated a return of greater than 12 percent, selling them could be a favorable option. Capital gains of up to one lakh are tax-free, which is an added advantage. However, you might be hesitant to pay taxes. In such a situation, you need to consider the potential scenario of your investment valuation dropping. In such a case, you may have to choose between paying taxes on your gains or accepting the losses incurred.

In the current bullish market, it may not be advisable to take out a loan. However, during a market downturn, taking a loan against your investments could be a more viable option.

Share This Article
Facebook Twitter Email Copy Link Print
By Rajendra Todkar
Follow:
Rajendra Todkar is an experienced finance, investment, and insurance writer with a passion for educating readers about personal finance and helping them make informed decisions. With over 15 years of dedicated experience in the field, Rajendra Todkar has established a strong reputation for providing valuable insights and practical advice.
Previous Article Mobikwik ZIP Pay Later Review
Next Article The Benefits of Investing in Mutual Fund for Long-Term Wealth Growth

Latest Post

  • The Regulatory Landscape of Pay Later: Consumer Protection and Regulations
  • How to select Right Mutual Fund?
  • Generating Reliable Income via Debt SWP Strategy
  • The Importance of Aligning Your Investments with Your Goals
  • ePayLater Review
  • The Benefits of Investing in Mutual Fund for Long-Term Wealth Growth
  • Volt Money Loan Against Mutual Fund Review

You Might Also Like

How to select fund checklist 1
Mutual Fund

How to select Right Mutual Fund?

August 12, 2023

Generating Reliable Income via Debt SWP Strategy

August 4, 2023

The Importance of Aligning Your Investments with Your Goals

August 3, 2023

The Benefits of Investing in Mutual Fund for Long-Term Wealth Growth

August 2, 2023
Mutual Fund

SWP vs. Annuity: Decoding Retirement Income Options

June 26, 2023
How-to-Optimize-Returns-with-Mutual-Fund-SIPs
Mutual Fund

How to Optimize Returns with Mutual Fund SIPs?

June 25, 2023
Analyzing-Mutual-Fund-Fact-Sheets-Key-Metrics-Interpretation
Mutual Fund

Analyzing Mutual Fund Fact Sheets: Key Metrics and Interpretation

June 25, 2023

Understanding Mutual Fund SWP Plans

June 24, 2023
Show More
© 2023 Puneinvest. All Rights Reserved.
  • SiteMap
  • Terms and Conditions
  • Disclaimer
  • Privacy Policy
  • About Us
  • Advertise with Us
  • Our Services
  • Contact Us
Welcome Back!

Sign in to your account

Lost your password?