Building an investment portfolio for pledging

I would like to build an investment portfolio which I can pledge for trading. I trade (mostly sell OTM) NIFTY options on Zerodha (using Sensibull) . I am thinking of diversifying as follows:

25% cash

25% SGBs pledged

25% debt funds pledged

25% Equity funds pledged

What do you think about this basket? Is there a more optimal configuration? Any suggestions for further diversifying the debt and equity fund sub-baskets?

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@iamitp , if you’re carrying the position overnight, Zerodha mandates 50% of margin in liquid securities.
Please note this

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Ah so that’s 50% in cash for overnight positions?

Yes. Overnight. Cash equivalent, meaning SGB and Liquid MF are accepted as cash portion.


Ok I guess I’m good with 50% as cash + SGBs then. Tips on how to build a pledging portfolio with the other 50%?

It might sound like typical advice but depends on you.
If you are expecting returns from pledged capital also, put it in blue chips, TCS, Infy, etc. But, you should be able to accept higher haircuts and the volataility of the asset itself.
Else, you can put in ETS such as Bharat bond and cap the returns on pleaded capital to 6-7% and enjoy lower haircut and lowe volataility

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Fair enough. I was looking for a middle ground with Bluechip MFs + Debt fund

Even i have started doing weekly iron condors on nifty.

Can I know what strategy you follow?
How you select strike prices?
When do you enter the trade?
What is your MTM stop loss?
When do you square off the positions?
And lastly, your position size? :slight_smile:

I can’t really frame my strategy other than getting a 0.5-1% Return on margin by selling OTM NIFTY Options. I enter the trade on Friday and let my options expire rather than square off. Haven’t used an MTM stop loss, and had only squared off once in the past 6 months when the market moved too close to my breakeven (thought not breaching it).

I mostly follow the Sensibull Kya Lag Raha Hai market show on Youtube + my own research and intuition. Profitable every week except one since August 2021, with an average return of 0.8% on margin.