Tax efficiency benefits of Loan Against Mutual Funds explained

Loan Against Mutual Funds improves tax efficiency by avoiding capital gains tax while providing access to immediate liquidity.

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Tax efficiency benefits of Loan Against Mutual Funds explained

1 min read57 words
Tax efficiency benefits of Loan Against Mutual Funds explained
Loan Against Mutual Funds improves tax efficiency by avoiding capital gains tax while providing access to immediate liquidity.
Selling mutual funds to raise cash can trigger capital gains tax, reducing net returns. Loan Against Mutual Funds avoids this by allowing investors to borrow against pledged units instead of redeeming them. This preserves tax efficiency and helps maintain overall portfolio returns. For investors seeking liquidity without tax leakage, this option offers a strategic advantage. Apply Now
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