Liquidity Without Liquidation
Why sell long-term investments
when you only need short-term liquidity?
A Loan Against Securities (LAS) allows you to borrow against your existing investments — such as shares, mutual funds, or other eligible securities — without breaking your long-term financial plan.
At PaisaNurture, our Certified Financial Planners (CFPs) help clients use LAS strategically, so liquidity needs are met without disturbing long-term goals.
The Uncomfortable Truth
Most investors:
Most real estate frustrations arise from:
- Sell investments during temporary cash needs
- Break long-term compounding unnecessarily
- Trigger tax implications unknowingly
- Rebuild portfolios later at higher costs
Liquidity problems often destroy wealth —
not bad investments.
PaisaNurture Philosophy
Borrow Smart. Keep Compounding Alive.
At PaisaNurture, we do not recommend LAS as:
- A lifestyle loan
- A substitute for emergency funds
- A way to over-leverage investments
We recommend it as:
- A temporary liquidity bridge
- A tool to protect long-term portfolios
- A structured alternative to selling assets
Liquidity should solve problems — not create new ones.
How Loan Against Securities Works (Conceptually)
With LAS:
- You pledge eligible investments as collateral
- The investments remain invested
- You access funds based on defined limits
- Interest applies only on the amount utilised
The effectiveness depends on:
- Type of securities pledged
- Portfolio quality
- Usage discipline
- Market movement awareness
This is a planning tool, not just a loan.
When Loan Against Securities Makes Sense
LAS can be effective for:
- Short-term business or working capital needs
- Bridging cash flow gaps
- Emergency liquidity beyond cash reserves
- Avoiding sale of long-term investments
- Tax-efficient liquidity planning
It works best when:
The need is temporary
and the investment goal is long-term.
When LAS Should Be Avoided
Loan Against Securities is not suitable when:
- The loan is long-term in nature
- Cash flows are uncertain
- The portfolio is already aggressive
- Borrowing is driven by consumption
Misuse converts a smart tool into a risk.
Risk Awareness Matters
Borrowing Comes With Responsibility
Since LAS is market-linked:
- Value of collateral can fluctuate
- Additional margin requirements may arise
- Discipline is critical during market volatility
This is why:
Professional guidance is essential before using LAS.
How PaisaNurture Adds Value
We help you:
- Decide whether LAS is appropriate
- Evaluate which securities can be pledged
- Structure borrowing limits conservatively
- Align repayment with cash flows
- Coordinate with lenders objectively
We focus on portfolio protection, not loan disbursal volume.
LAS vs Selling Investments
The Real Difference
Selling investments:
- Breaks compounding
- Triggers taxes
- Disrupts long-term plans
Using LAS:
- Preserves portfolio structure
- Provides flexibility
- Buys time without panic
The right choice depends on context, not convenience.
Who This Is For / Who This Is Not For
This is for you if:
- You have quality long-term investments
- You need short-term liquidity
- You value planning over reaction
- You understand borrowing discipline
This is NOT for you if:
- You want easy consumption credit
- You are uncomfortable with market movements
- You already carry high leverage
- You prefer fixed, long-term borrowing
Why Clients Trust PaisaNurture
- Certified Financial Planner-led guidance
- Independent lender coordination
- Goal-based borrowing assessment
- Zero mis-selling commitment
- Long-term portfolio thinking
