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How Loan Against Mutual Funds Can Reduce Opportunity Cost
Prevent panic selling during market downturns by accessing liquidity.
Opportunity cost is the "Profit you didn't make." If you sell ₹5 Lakh of units that grow 20%, your opportunity cost is ₹1 Lakh. If you took an LAMF for ₹5 Lakh at 10%, your cost is ₹50,000. By borrowing, you saved ₹50,000 net wealth. LAMF is a mathematical tool to minimize this drain on your riches, ensuring your capital is always working.