For investors in need of liquidity, two common options often come to mind—selling shares or availing a loan against shares. While both provide access to cash, the smarter choice depends on one’s financial goals and long-term investment planning.
Selling shares offers immediate liquidity but comes at the cost of losing ownership in potentially high-growth investments. Additionally, selling during a market downturn may lead to losses. On the other hand, a loan against shares allows investors to retain ownership while accessing funds by pledging their holdings. This ensures participation in future gains while meeting short-term financial needs.
When weighing liquidity solutions, it is important to consider interest costs, market conditions, and repayment capacity. In many cases, a loan against shares proves to be a more strategic option, especially for those confident in the long-term performance of their portfolio. With careful investment planning, this approach balances immediate financial needs with long-term wealth creation.
How do portfolio managers minimise investment losses in India? Understand the key risk management strategies used in PMS and how they protect your wealth.
The new financial year 2026-27 is here. Here’s a complete investment planning guide for salaried individuals, taxpayers, and investors to kickstart FY27 the right way.
