Efficient management of a Loan Against Mutual Funds (LAMF) can help investors avoid financial stress. First, monitor your NAV weekly to prevent surprise margin calls. Second, maintain at least a 10–15% collateral buffer above the lender’s required LTV ratio. Third, opt for auto-debit or standing instructions to ensure timely interest payments. Fourth, avoid pledging high-volatility equity funds during market peaks. Finally, reassess loan exposure quarterly to align with investment goals and changing interest rates for optimal risk control.