Investors often liquidate mutual fund holdings to meet short-term cash needs, overlooking the long term cost of breaking compounding cycles. Selling during volatile or low market phases can lock in losses and trigger unnecessary capital gains tax. A Loan Against Mutual Funds (LAMF) offers an alternative by allowing investors to borrow against their existing holdings without redeeming units. This approach preserves market participation while providing liquidity. However, borrowers must remain aware of loan to value limits and repayment obligations. Apply Now