Can I pledge my mutual fund investments to get margins?
As of now, we don’t allow pledging of mutual funds for trading margins. If the facility is introduced all clients will be notified of the same.
If you want to pledge liquid funds, an alternative is to redeem your liquid funds and invest in LiquidBees/DSP liquid ETFs. LiquidBees/DSP liquid ETFs and liquid mutual funds have similar risk & return profiles. You can pledge these to get collateral margins.
Note: However you can use your mutual fund holdings in your DEMAT as collateral for a loan from a financial institution. Click here to learn more.