Need financial advice

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I am no financial expert, but I think 🤔 both of your options are good.

I am not an expert, but considering the market, option 1 seems better to me.

@third.i.financial.advisors @guest_999 @CA.Aniruddha.Rathi

Loans against mutual fund portfolio is another option.

Should also keep in mind what is applicable stcg or ltcg and it's tax impact

My view: If Considering the options 2, it also depends after how long your friend will be able to repay.

Option 1 is safe if mf is in + or = state.

Now LTCG new rule of 12 and 24 month is there. So one can calculate if its good to withdraw money or hold for ltcg.

Not an expert but always looking for best deal so it is my view.

He should redeem the amount from Mutual Funds that come under LTCG if he has gains else option 2.
MFs are made for this purpose only. Redeeming only LTCG part will ensure less taxation.

If he needs at December last week, then there will be sell-off in Christmas/new year holidays, reducing mf value, better sell LTCG portion at peak indices value and park that fund into a bank FD of that tenure/liquid fund that can be withdrawn at short notice...

If he means Diwali purchases, then let me know...

BTW, what kind of purchase? Car?

What's the source of his income. That is important. If it's business, the risk is already on unless well established.

Though , a loan adds financial discipline and always reminds responsibility, a business in itself is a risk.

So one solution to all would not suit.

He has to list down his assets and liabilities and also plan for atleast next one year by keeping emergency fund, remember it's marriage.

If he is earning salary and his overall loan is less than 25% . 50% fund from OD and 50% from MF should do.

This was practically implemented by my colleague then in 2014, I being naive would not even planned for it.

Sell those portions of the MFs (assuming there are multiple) in which investment was started around/during the beginning of the bull run so around 2021 till now & prefer mid & small caps among those duration for selling. I would advice against taking loan especially at the beginning of the married life unless it is for home & is taken with full knowledge of the spouse.

How about loan on mf ...

There is a increase in the outflow trend from mf. So I think he should go for option 1