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Tax efficiency remains a key advantage of borrowing against investments
LAMF allows investors to access liquidity without selling mutual fund units, helping defer capital gains taxes and improve overall tax efficiency.
Selling mutual fund units to raise cash can trigger capital gains taxes and exit loads for investors. Loan Against Mutual Funds avoids this by enabling borrowing without redeeming holdings. Since ownership remains unchanged, tax liability is deferred. Financial advisors highlight that this structure improves tax efficiency while addressing liquidity needs, particularly for investors holding long term equity and debt mutual fund portfolios. Apply Now