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Dilema over encashing savings or taking a loan

I am 41 years old and have been investing regularly for the past 6 years @ 10k in PF, 10K in three different MFs.

I am now facing a dilemma, I am buying a sec house (already taken a house loan for the first one) and am left short of cash of 7 Lakhs.  My question is do I go in for another house loan or do I encash my MFs?

Abhijeet

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