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Financial requirements can arise unexpectedly, whether for a medical emergency, education, business needs, home renovation or another planned expense. If you already have money invested in mutual funds, you may consider two ways to arrange funds: Loan Against Mutual Funds vs Redemption. Both options can provide access to liquidity, but they work differently. A loan allows you to borrow against eligible mutual fund units, while redemption involves selling your investments. The right approach depends on factors such as your financial requirement, repayment capacity, tax implications, investment goals and the terms offered by the lender. What Is a Loan Against Mutual Funds? A Loan Against Mutual Funds, commonly referred to as LAMF, allows an investor to pledge eligible mutual fund units as collateral and borrow money against them. Instead of selling the units, the investor continues to hold the investment while the lender provides funds based on applicable Loan-to-Value (LTV) limits and eligibility criteria. This option may be considered when the requirement is temporary and the investor has sufficient cash flow to repay the borrowing. However, borrowing against investments comes with costs and responsibilities. Depending on the lender and loan structure, these may include: Therefore, investors should understand the complete loan terms before proceeding. What Is Mutual Fund Redemption? Mutual fund redemption means selling some or all of your mutual fund units to receive money from your investment. Unlike borrowing, selling units does not create a loan or repayment obligation. However, redemption can affect your investment portfolio and may have tax or cost implications. Before selling units, investors should consider: The financial impact can also vary depending on the mutual fund scheme, holding period and type of investment. Loan Against Mutual Funds vs Redemption: Key Differences The fundamental difference is simple: with a loan, your eligible investment is used as collateral, while redemption means selling the investment itself. Factor Loan Against Mutual Funds Redemption Investment Units remain invested but are pledged Units are sold Interest Applicable as per loan terms Not applicable Repayment Required Not required Market exposure Investment generally remains exposed to market movements Exposure reduces on the amount sold Tax consideration Borrowing itself is not a mutual fund redemption Capital gains tax may apply Exit load Generally not triggered merely by pledging units May apply depending on the scheme and units sold Main consideration Interest, repayment and collateral terms Tax, exit load and impact on portfolio This comparison shows that neither option works in exactly the same way. The choice should be based on the investor’s broader financial circumstances. When Could Borrowing Against Mutual Funds Be Considered? A loan against investments may be considered when the financial requirement is temporary and you have a reliable repayment plan. For example, assume you have ₹8 lakh invested in eligible mutual funds and need ₹2 lakh for a short-term requirement. Instead of immediately selling units, you could explore whether borrowing against those investments is available at suitable terms. The investment remains in place, but you take on a financial liability. Before choosing this route, review: The availability and terms of such facilities can vary between lenders and eligible mutual fund schemes. When Could Mutual Fund Redemption Be Considered? Selling mutual fund units may be considered when you need funds but do not want to take on additional debt. It can also be relevant when: However, selling investments should not be based solely on the immediate need for cash. Consider the tax consequences, exit load and potential impact on your long-term investment strategy before redeeming. Don’t Compare Only the Loan Interest Rate With Mutual Fund Returns One common mistake is to compare the interest rate on a loan with the expected return from a mutual fund and assume that the lower percentage automatically makes one option preferable. For example, a mutual fund may have delivered strong returns historically. However, past performance does not guarantee future returns, and mutual funds are subject to market risks. Loan interest is different because it represents an actual borrowing cost that has to be paid according to the loan agreement. A more complete assessment should consider: Borrowing cost + repayment capacity + taxes + market risk + portfolio impact + financial goals This provides a more meaningful framework than comparing only the interest rate with an expected investment return. A Simple Example Suppose you have ₹10 lakh invested in mutual funds and need ₹3 lakh. Option 1: Redeem Your Units You sell ₹3 lakh worth of mutual fund units and receive the redemption proceeds, subject to applicable scheme terms. There is no loan repayment or interest cost. However: Option 2: Borrow Against Your Units You pledge eligible mutual fund units and borrow ₹3 lakh, subject to the lender’s LTV and eligibility conditions. Your investment remains in place, but you have to repay the borrowed amount along with applicable interest. There is also market risk because the value of the pledged investments can fluctuate. Depending on the lender’s terms, a significant decline in collateral value may require additional action from the borrower. The example demonstrates why accessing cash through investments should be evaluated from both a short-term and long-term perspective. Factors to Consider Before Choosing Before deciding whether to sell your units or borrow against them, ask yourself the following questions: 1. How Much Money Do I Actually Need? Avoid raising more funds than necessary. The amount required should be evaluated against the costs and consequences of each option. 2. Is the Requirement Short-Term or Long-Term? Temporary financial requirements may be evaluated differently from expenses that require a permanent withdrawal from your investment portfolio. 3. Can I Repay the Borrowing Comfortably? If you choose a loan, make sure your regular cash flow can support the repayment and interest obligations. 4. What Are the Tax Implications? Before redemption, check whether the transaction could result in taxable capital gains based on the type of mutual fund, holding period and applicable tax rules. 5. Is There an Exit Load? Some mutual fund schemes may charge an exit load when units are

Young IPOs often attract significant attention because of listing-day gains, subscription numbers and early price movements. However, the real investment journey begins after a company enters the public market. A snapshot of 13 recently listed mainboard companies shows just how differently stocks can perform after their market debut. Based on the supplied data, gains from listing-day levels range from 7.14% to more than 300%. This wide variation highlights an important point: an IPO is not simply a one-day market event. It is the beginning of a company’s journey as a publicly traded business. A Snapshot of 13 Young IPOs The supplied graphic shows the following gains from listing-day levels: Rank Company Gain Since Listing 1 ESDS Software +305.19% 2 Omnitech Engineering +211.14% 3 Milky Mist Dairy +108.22% 4 Indo-MIM +103.41% 5 MV Electrosystems +96.08% 6 Dhoot Transmission +93.93% 7 Onemi Technology +92.84% 8 Molbio Diagnostics +88.32% 9 Amagi Media Labs +85.03% 10 Aye Finance +37.00% 11 Shiprocket +35.61% 12 Sunshine Pictures +12.75% 13 Deepa Jewellers +7.14% Note: Figures are reproduced from the supplied graphic and represent gains from listing-day levels. They should not be interpreted as future return expectations. The difference between the highest and lowest figures is substantial. However, these numbers alone do not explain why the companies performed differently. To understand post-listing performance, investors need to look beyond the share price. What Makes Newly Listed Companies Interesting? Once a company becomes publicly traded, investors have access to a continuous stream of information about its business. This includes: This information allows investors to compare the company’s actual performance with the expectations that existed around its IPO. The company may also use funds raised through a fresh issue for activities such as: If these investments contribute to sustainable revenue and earnings growth, investors may reassess the company’s future prospects. If expectations are not achieved, however, the market may reassess the company’s valuation in the opposite direction. Listing Day Is Only the Beginning One common mistake when analysing an IPO is treating the listing price as the complete investment story. It isn’t. A stock can list at a significant premium and subsequently decline. Another company may have a relatively modest debut and then experience stronger performance over the following years. There can also be periods when a stock moves sharply in either direction without a clear long-term trend. This creates an important distinction between: Listing performance and Post-listing business performance Listing performance primarily reflects how the market values the company at a particular point in time. Business performance involves much more: For long-term investors, understanding these factors can provide greater context than looking at the listing-day movement alone. What Should Investors Track After an IPO? 1. Revenue Growth Revenue growth indicates whether a company’s underlying business is expanding. However, rapidly increasing revenue does not automatically mean the business is becoming more valuable. Investors should also examine: The quality of revenue growth can be just as important as the growth rate. 2. Profitability Profitability provides insight into the economics of a company’s operations. Important metrics can include: A company growing rapidly while consistently generating weak or declining margins may have a different risk profile from a business that combines growth with sustainable profitability. 3. Cash Flow Reported profits do not always translate into cash generation. This is why investors should examine: A company may report strong accounting profits while its cash flows remain under pressure because of receivables, inventory or other working-capital requirements. 4. Debt and Balance Sheet Balance-sheet strength is another important consideration after listing. Investors should monitor: A healthy balance sheet can provide financial flexibility, while excessive leverage can increase risk when business conditions weaken. 5. Management Execution Before an IPO, investors generally evaluate a company’s plans through its offer documents and management disclosures. After listing, those plans can be measured against actual execution. Investors can track whether management is delivering on: The difference between what a company planned and what it ultimately delivers can be an important part of the post-listing investment analysis. 6. Valuation Strong business growth does not automatically mean a stock is attractively valued. Investors should consider valuation alongside financial performance. Depending on the sector, relevant measures may include: The appropriate valuation measure varies between industries. For example, a technology company, manufacturer, financial institution and consumer business may require very different approaches to valuation. Why Can Post-IPO Performance Vary So Much? The supplied 13-company snapshot shows a large difference in returns from listing-day levels. Several factors can contribute to this variation. Different Industries Companies from technology, manufacturing, healthcare, financial services and consumer sectors operate under different economic conditions. Industry growth rates, competition, regulations and capital requirements can all affect business performance. Different Growth Rates Some companies can scale rapidly because they operate in expanding markets or have asset-light business models. Others may require significant investment before additional capacity translates into higher revenue and profits. Different Starting Valuations The valuation at which a company enters the public market matters. Two companies with similar earnings growth can experience very different stock-price performance if investors initially value them at different multiples. Market Cycles Broader market conditions can influence newly listed stocks. Factors such as: can affect valuations. Earnings Surprises Stock prices can react when actual financial results differ substantially from market expectations. Better-than-expected earnings may change investor expectations, while weaker results can have the opposite effect. Corporate Developments Events after listing can significantly change the market’s view of a company. These may include: As a result, the post-IPO journey can develop very differently from the original investment narrative. From IPO Story to Business Story Before listing, much of the investment narrative revolves around the IPO itself. Investors may focus on: Issue price + Subscription + Listing premium + Initial valuation After listing, the focus can shift toward: Revenue + Profitability + Cash Flow + Competitive Position + Valuation This is a fundamental change. Once the company is public, investors receive regular information that allows them to reassess the original investment thesis. The key question changes from: “Should I

Ganesh Chaturthi SIP can be more than a festive resolution. It can be a meaningful opportunity to take the first step towards disciplined investing and long-term financial planning. Ganesh Chaturthi celebrates Lord Ganesha, who is traditionally associated with wisdom, prosperity, good fortune and the removal of obstacles. Every year, families welcome Ganpati Bappa with devotion and prayers for happiness and prosperity. In Indian tradition, Lord Ganesha is worshipped before starting something new or important. Whether it is a new business, a new journey or an important milestone, people seek blessings for a positive and successful beginning. This Ganesh Chaturthi, that idea of a Shubh Shuruaat can also inspire you to think about your financial future. Instead of waiting for the “perfect time” to invest, you can consider starting a systematic investment habit that fits your income, financial goals and risk profile. Why Ganesh Chaturthi Is a Good Reminder to Start Investing Starting something new requires intention, discipline and consistency. These are also important qualities when it comes to managing money. Many people keep postponing their investment plans: The problem is that there may never be a perfect time to start. A better approach can be to begin with an amount that you can comfortably afford and continue investing regularly. Your first investment does not need to be large. What matters is creating a financial habit that you can maintain over time. Ganpati Bappa ke saath shuruaat bhi shubh, aur apne financial future ke liye pehla kadam bhi shubh. What Is a Systematic Investment Plan? A Systematic Investment Plan, commonly known as SIP, is a method of investing a fixed amount in a mutual fund scheme at regular intervals, usually every month. For example, an investor may choose to invest ₹5,000 every month. The amount is invested according to the selected mutual fund scheme and its applicable terms. The basic approach is simple: Start with what you can afford.Invest regularly.Stay invested according to your financial goal and investment horizon. Over time, regular investing can become a financial habit rather than an occasional decision. It is important to remember that mutual fund investments are subject to market risks. The value of investments can rise or fall depending on market conditions. 1. Start Small and Build a Financial Habit One of the biggest challenges in investing is getting started. You do not necessarily need a large amount of money to begin. Depending on the mutual fund scheme and its minimum investment requirements, investors may be able to start with a relatively small amount. The right amount depends on your income, expenses, financial commitments and goals. For example, after accounting for essential expenses and emergency requirements, you may decide to allocate a suitable portion of your monthly income towards investments. The objective should not be to invest an uncomfortable amount simply because you want to start quickly. Instead, choose an amount that fits your financial situation. Start somewhere. Start with what you can afford. Start with a plan. Your first monthly investment may seem small, but developing the habit of investing regularly can be an important step towards long-term financial planning. 2. Let Your Salary Work Towards Your Future Your monthly salary may already be divided between rent, bills, groceries, transportation, lifestyle expenses and other commitments. But it is equally important to think about your future financial goals. A regular investment approach can help you set aside money for long-term objectives before your entire income gets spent. You can think of your monthly financial routine as: Earn → Plan → Invest → Repeat The amount you invest can change as your income and financial circumstances change. For someone beginning their career, the priority may simply be developing the habit. Later, as income increases, the investment amount can potentially be increased in line with financial goals and affordability. 3. Understand Rupee Cost Averaging One of the commonly discussed benefits of investing regularly is rupee cost averaging. When a fixed amount is invested at regular intervals, the number of mutual fund units purchased can vary depending on the prevailing market price. When prices are lower, the same investment amount may purchase more units. When prices are higher, it may purchase fewer units. Over multiple investment periods, this can result in an average purchase cost. However, rupee cost averaging does not eliminate market risk and does not guarantee profits. Market-linked investments can experience fluctuations, and investors should understand the risks associated with their chosen mutual fund scheme. 4. Give Compounding More Time One of the most important concepts in long-term investing is compounding. When returns remain invested, the accumulated amount can potentially generate further returns over time. As the investment period increases, this compounding effect can become increasingly significant. This is why starting earlier can be valuable. Consider a hypothetical example. ₹15,000 Monthly Investment for 15 Years Suppose an investor contributes ₹15,000 per month for 15 years. The total amount invested would be: ₹15,000 × 12 × 15 = ₹27 lakh If the investment were to generate a hypothetical 15% annualized return, the potential value after 15 years would be approximately ₹1.01 crore. This can be represented as: ₹15,000 monthly investment× 15 years× assumed 15% annualized return≈ ₹1 crore However, this is only a hypothetical illustration. A 15% annualized return is not guaranteed. Actual returns can be higher or lower depending on market performance, the mutual fund scheme and other factors. The real lesson is not that every investment will grow to ₹1 crore. The lesson is that regular investing, a long investment horizon and the potential power of compounding can play an important role in wealth creation. 5. You Do Not Need to Wait for a Big Salary A common misconception is that investing is only for people with high incomes. In reality, financial planning can begin with whatever amount is appropriate for your circumstances. You do not necessarily have to wait until your salary reaches a particular level or until you accumulate a large bank balance. The important question is: What amount can you

Stock market crashes in India have repeatedly tested investors, businesses and the country’s financial system. From financial scams and global economic crises to political uncertainty, liquidity concerns and unexpected shocks, Indian equities have experienced several sharp declines over the decades. Studying these market downturns can help investors understand how markets respond to fear, excessive valuations, economic uncertainty and global events. More importantly, history shows why diversification, disciplined investing, adequate liquidity and risk management are essential for long-term wealth creation. What Causes a Stock Market Crash? A market crash occurs when stock prices fall sharply over a relatively short period. There is rarely a single reason behind a major decline. Several factors can combine to trigger a widespread sell-off. Common causes include: Some events result in a full-scale crash, while others produce a significant correction that eventually stabilises. 10 Major Stock Market Crashes and Corrections in India 1. 1992 – Harshad Mehta Scam The 1992 securities scam associated with stockbroker Harshad Mehta became one of the most significant episodes in Indian financial-market history. The scam exposed weaknesses in the banking and securities system and contributed to a dramatic decline in the equity market. The Sensex experienced a major fall from its peak during this period. Approximate market decline: 54% Beyond the market losses, the episode highlighted weaknesses in financial-market infrastructure and supervision. Key lesson Investors should understand the importance of market regulation, corporate governance, transparency and financial-system stability. The aftermath also contributed to major improvements in India’s securities-market framework and regulatory supervision. 2. 2000–02 – Dot-Com Bubble The technology boom of the late 1990s created extraordinary enthusiasm for internet and technology-related companies around the world. As valuations climbed far beyond what many businesses could justify through earnings and fundamentals, the bubble eventually burst. Indian technology stocks were also affected by the global downturn, while broader market sentiment weakened. Approximate Sensex/Nifty decline: 56% The episode demonstrated that even companies operating in promising industries can experience severe declines when investors pay excessive prices for future growth. Key lesson A good business does not automatically make a good investment at any valuation. Investors should consider earnings, cash flows, business quality and valuation rather than buying solely because a sector is experiencing rapid growth. 3. 2004 – Election Shock The 2004 general election result surprised a large section of the financial market. Investors had developed expectations about the political and economic direction of the country. When the election outcome differed from those expectations, uncertainty increased sharply. The Sensex experienced a severe one-day decline. Approximate one-day fall: 11.1% The event demonstrated how quickly markets can react when expectations and reality diverge. Key lesson Political developments can influence financial markets, but short-term market reactions do not necessarily determine long-term economic performance. Investors should therefore avoid making major portfolio decisions solely on the basis of short-term political headlines. 4. 2008–09 – Global Financial Crisis The global financial crisis remains one of the most severe market downturns of the modern era. The collapse of Lehman Brothers in September 2008 intensified fears about the global banking system. Financial institutions faced enormous pressure, credit markets tightened and economies around the world entered a sharp slowdown. Indian equities were hit by global risk aversion, foreign capital outflows, declining economic expectations and concerns about corporate earnings. Approximate Sensex/Nifty decline: 61% The downturn affected investors across sectors and demonstrated how closely interconnected global financial markets had become. Key lesson Global events can have a significant impact on domestic markets. Maintaining a diversified portfolio and a long-term investment horizon can help investors manage extreme volatility. 5. 2015 – China and Global Market Sell-Off In 2015, concerns about China’s economic slowdown and weakness in global markets triggered a broad risk-off environment. Indian equities also experienced significant volatility as investors reassessed global economic growth, commodity prices and corporate earnings expectations. Approximate decline: 23% from the peak Although the episode was less severe than the 2008 financial crisis, it demonstrated how developments in one major economy can influence investor sentiment across the world. Key lesson International markets, commodity prices, currencies and global economic conditions can influence Indian equities even when domestic fundamentals remain relatively stable. 6. 2016 – Demonetisation The government’s demonetisation announcement in November 2016 created significant short-term uncertainty. Investors became concerned about the potential impact on consumption, liquidity, economic activity and corporate earnings. The market reacted negatively in the immediate aftermath. Approximate one-day decline: 6.1% However, the market subsequently adjusted as investors assessed the longer-term economic consequences. Key lesson Markets often react strongly to uncertainty before the full economic impact of an event becomes clear. Investors should distinguish between short-term sentiment and long-term fundamentals. 7. 2018 – IL&FS and NBFC Crisis The default and financial problems surrounding Infrastructure Leasing & Financial Services, commonly known as IL&FS, created significant concerns across India’s financial markets. The episode raised questions about liquidity, credit availability and the financial health of non-banking financial companies. Several financial stocks and related sectors came under pressure. Approximate market correction: 15% The crisis highlighted the risks associated with excessive leverage and dependence on short-term funding. Key lesson Investors should pay close attention to: A company’s reported profits alone do not provide a complete picture of its financial strength. 8. 2020 – COVID-19 Market Crash The COVID-19 pandemic produced one of the fastest global equity-market sell-offs in modern history. As countries introduced lockdowns and economic activity came to a sudden halt, investors faced enormous uncertainty about corporate earnings, employment, supply chains and economic growth. Indian equities experienced a sharp decline within a short period. Approximate Sensex/Nifty decline: 38% What made the episode particularly notable was the speed of both the decline and subsequent recovery. Key lesson Timing the market is extremely difficult. Investors who attempt to predict the exact top or bottom can easily make emotional decisions. A disciplined investment strategy can be more effective than reacting to every major headline. 9. 2024–25 – Post-Election and FII-Driven Correction After a strong period of market performance, Indian equities experienced periods of volatility driven by factors including