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Tax Implications of Loan Against Mutual Funds Explained
LAMF avoids capital gains tax by allowing borrowing without redemption, offering tax efficiency compared to selling mutual fund investments.
One of the key advantages of Loan Against Mutual Funds is its tax efficiency. Since investors do not redeem their mutual fund units, no capital gains tax is triggered at the time of borrowing. This makes LAMF attractive compared to selling investments during market highs or lows.Loan interest is usually not tax-deductible for personal use, but may qualify as a business expense in some cases. Apply Now