I think you should spread the risk by investing in different types of schemes.
Right now I have spread it between Liquid funds (Axis/Franklin) and Gilt funds (ICICI/Nippon). Will re-balance if required after 6 months (Mar - 21).
Continuing on the previous response. I also plan to purchase SGB (which is surprisingly cash component) when the prices cool down a bit. This will create a portfolio hedge and small yearly income of 2.5%.
in case of margin shortfall or loss ; the broker has to liquidate the pledged security , to the extent the shortfall amount .
But , if your pledged security is MFs ; it has to be liquidated in full lot size and not to the extent of your margin shortfall !
another , matter of concern is that there is no trading in the secondary market for all the MFs and thos MFs trade have hardly any volume liquidity in it . So , i wonder how the broker would liquidated the pledged MFs security !!
Some good questions raised here w.r.t liquidating pledged securities… do you liquidate fully or partially incase of shortfall… is there a difference if the pledged security is a Mutual Fund and not a Stock?
Sometimes we may cut position, sometimes we may let to carry forward position as it depends at the discretion of our RMS, final point is if there is debit of 10k in account, we will sell worth of 10k only so that it will make good of debit.It is client responsibility to take care of his positions.