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Investors weigh LAMF to avoid tax impact of mutual fund redemptions
To avoid capital gains tax from redemptions, investors are considering loan against mutual funds for short-term liquidity while keeping investments intact.
Tax implications often influence decisions when investors redeem mutual fund units to meet cash requirements. Loan against mutual funds is being evaluated as a way to raise liquidity without triggering capital gains tax at the time of borrowing. Instead of selling units, investors pledge them as collateral and continue holding the investments. While interest costs and repayment obligations apply, the structure may help investors manage short-term needs more efficiently. Apply Now