Redemption or Loan Against Security

Understand how to access funds while keeping your investments secure.

Redemption in Mutual Funds

Redemption means you sell your MUTUAL FUND units to get your money back. The amount you receive depends on how much the units are worth at the time of redemption. It's like trading your tickets for cash.

Key Note: Selling your units reduces the fund's assets under management (AUM) and may impact your set goals.

Loan Against Security in Mutual Funds

A loan against security allows you to borrow money using your MUTUAL FUND units as a guarantee. This helps you access funds without selling your investments. The lender gives you money based on your fund's value, and your investment continues to grow.

Key Benefit: Meet your financial needs without disturbing your investment growth.

Summary
  • Redemption: Sell MUTUAL FUND units to get cash. However, it reduces AUM and may affect your goals.
  • Loan Against Security: Borrow against your MUTUAL FUND units while keeping your investments intact and growing.