Let me tell you about a mistake a lot of investors make. Markets fall, some unexpected expense shows up, and instead of thinking clearly, they hit the redeem button on their mutual funds. Done. Investments gone. The market then recovers, and they are left with nothing to show for years of disciplined SIPs.

There is a better way. It is called a loan against mutual funds, and once you understand how it works, you will wonder why no one told you about it earlier.

This is the part that makes the loan against mutual funds genuinely cost-efficient. You do not pay interest on the entire sanctioned limit. You only pay for what you actually withdraw, and only for the duration you hold it. Bajaj Finance charges interest monthly on the utilised amount.