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Understanding Tax Treatment in Loan Against Mutual Funds
LAMF borrowing does not trigger capital gains tax events.
A Loan Against Mutual Funds does not constitute a redemption transaction,meaning no capital gains tax is levied at the time of borrowing. Investors retain their exposure to market growth while meeting short-term liquidity needs.This approach may help defer taxable events and maintain portfolio allocation discipline.Nonetheless, interest rates, repayment schedules, and margin requirements should align with long-term financial planning objectives and risk tolerance levels.Apply Now