₹1 lakh are taxed at 10%. If you’ve invested for less than 12 months, brace yourself for a higher tax rate of 15% on the gains. These tax burdens can diminish your overall returns.
But fear not! By considering LAMF, you can avoid these tax headaches and hold on to more of your hard-earned money. Credit cards entice us with appealing cashback offers and flashy marketing gimmicks, tempting us to overspend. However, their interest rates can climb as high as 18-24% per annum or even more! Instead of relying on credit cards, why not harness the power of mutual fund units as a line of credit? LAMF offers a much cheaper alternative, with interest rates typically ranging between a friendlier 9-11% p.a.
Imagine this—your mutual fund units becoming your trusty sidekick, offering an overdraft facility to create a secure line of credit. It’s like having a financial fortress at your disposal. With LAMF, you can unleash the power of your equity mutual funds, accessing up to 50% of their value.
And if you have debt mutual funds in your arsenal, you can tap into up to 80% of their value. Even if you have multiple mutual fund schemes, you can avail credit against all the schemes at the same time. You also can choose particular schemes against which you wish to avail credit.
However, in case of tax saver funds (ELSS) you would not be able to avail credit till the fund units crosses the lock-in period of three years. Various fintech companies have joined forces to simplify the process, bidding farewell to unnecessary paperwork and reducing processing time. Within a few clicks, you can have the money you need in your account within hours.
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