Can I pledge Mutual funds for trading F&O?

Is it possible for me to pledge mutual fund which i bought directly from teh fund page : Ex: Nippon India Mutual fund

I had invested in that around 2008 directly .

if yes , how do i do that . If no whats the alternative slution

You can only pledge Mutual Fund that are in your Demat account.

If your Mutual Fund is Direct, you can transfer it to your Zerodha Demat account, you can know more here. If you Mutual Fund is regular then you can redeem your investment and start afresh on Coin.

I am not getting option to pledge L&T EMERGING BUSINESSES FUND - DIRECT PLAN and TATA INDIA CONSUMER FUND - DIRECT PLAN in my console, they do appear in the list of allowed mutual funds to pledge.

Same here, sbi Magnum medium term fund

The SBI Magnum Medium Duration fund is available for pledging, you can check the complete list here.

Ya i know it’s available, but i dont see any option to pledge in zerodha console

The plans on the list are Regular Plans, Direct Plan of this fund is not yet available for pledging.

I have also noticed that for a typical mutual fund its REGULAR fund is available for pledging where as its DIRECT plan is not available. I am finding hard to understanding the reason for this?. Pl explain, if you know it.

For eg: SBI Small cap mutual fund - Growth. Its REGULAR plan is available where as DIRECT plan is not available for pledging from the sheet https://docs.google.com/spreadsheets/d/1vRI4NKpJ-3mnOWxUhSRMSQD5txy8QNumzSQrdfGKyL0/edit#gid=0.

I checked the same today as well.

I am holding ELSS funds which have surpassed the 3 year lock in requirement i.e. I have been holding them for more than 3 years. Is there a way I can pledge them with Zerodha for Margin ?

ELSS Mutual Fund’s cannot be pledged. You can check the list of all the securities which can be pledged here.

The main argument for not allowing pledging of ELSS is the lock in period. Shouldn’t the units which are free from the lock in be allowed to pledge for margin ? Can @nithin and his team figure out a way if this is possible? Thanks.

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