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Avoiding capital gains tax using LAMF facility
Borrowing instead of redeeming helps defer capital gains tax while maintaining full investment exposure.
In 2026, long-term capital gains exceeding ₹1.25 lakh are taxed at 12.5%, creating meaningful outflows upon redemption. Liquidating investments with a ₹5 lakh gain could result in approximately ₹46,875 in tax liability. Opting for LAMF instead eliminates this immediate tax trigger. The preserved capital can offset a substantial portion of borrowing costs, improving post-tax returns and enhancing overall portfolio efficiency. Apply Now