Investors often need liquidity just before their mutual fund investments reach long-term capital gains eligibility. A Loan Against Mutual Funds (LAMF) offers a short-term, tax-neutral bridge, allowing investors to access funds without triggering short-term capital gains tax. By comparing loan interest rates against potential tax savings, investors can determine whether borrowing is more cost-effective than selling. This approach suits those nearing the one-year mark for equity funds or three years for debt funds.