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Tax efficiency considerations in Loan Against Mutual Funds
LAMF helps investors avoid capital gains tax triggered by redemption.
Redeeming mutual funds may trigger capital gains tax depending on holding period and prevailing tax regulations. Loan Against Mutual Funds through LAMF enables investors to avoid immediate taxable events while accessing liquidity. By pledging instead of selling, portfolios remain intact and continue compounding. Analysts say this structure enhances tax efficiency and supports short term funding needs without disturbing long term investment plans.Apply Now