Holding a large emergency fund in a low-yield savings account can lead to significant opportunity costs over time. A Loan Against Mutual Funds (LAMF) provides a strategic alternative - offering instant liquidity without liquidating investments. Investors pay interest only on the utilized overdraft amount, while the underlying corpus continues compounding. This approach not only preserves NAV during market dips but also transforms idle capital into an active financial resource that maintains long-term portfolio growth.