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Short-Term vs Long-Term Borrowing: Where Does LAMF Fit in Your Strategy?
Borrowing against mutual funds may preserve higher return potential compared to low-yield fixed deposits.
LAMF is a short-to-medium term tool (6 months to 3 years).For long-term borrowing, home loans are cheaper (8.5% vs 10.5%). LAMF fits as a "Bridge Loan." If you need ₹10 Lakh for 12 months, the interest cost is ₹1.05 Lakh.Selling the same amount could cost ₹1.25 Lakh in taxes plus the loss of 12% market gains, making LAMF the mathematically superior short-term choice. Apply Now