Top Reasons to Use Mutual Fund Pledging Instead of Selling Investments
Ayush Samantaray•Lamf
When you need urgent liquidity, the traditional instinct is to hit the “redeem” button on your mutual fund dashboard. However, for a sophisticated investor, selling is often the most expensive way to get cash. Liquidating your portfolio doesn’t just stop your growth; it triggers taxes, exit loads, and breaks the momentum of compounding. It also forces you to exit the market at a time that may be unfavorable, locking in temporary volatility as a permanent loss. More importantly, re-entering later often means buying back at higher valuations, quietly eroding long-term wealth.
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