Margin against Fixed Deposit and MF

#1

Hi.

Does Zerodha offer margin against FD and MFs? Investors with sizable fixed income and mutual fund portfolio should be able to use it as collateral against F&O margin.

Any plans to offer this?

#2

FD’s is not possible as they are not currently in demat form. Gsecs/Tbills are possible.

MF’s currently no, but we are working on allowing all growth funds with no lock in to be pledged.

#3

Thanks Nithin. Need to check how Gsecs/Tbills stand against corporate FDs.

#4

Hi Nithin,
Any updates on this?
Lot of my investment decision depend on this. Such as to invest in niftybees or large cap fund?

I recently heard a few platforms already offering margin against MFs. I’m sure there is a legal way to handle it.

Thanks,
Nisarg

#5

@MohammedFaisal where are we at on pledging of MF? Can you update here.

#6

@MohammedFaisal and @nithin
Hi Guys, any updates on this facility?
Waiting for it, since my MFs are not giving any returns. Planning to do a bit of active management.

#7

@MohammedFaisal

Hi All,

Any update on when pledging Mutual fund unit is possible ? Waiting for this for long time.
Pledging Liquid bees is horrible as returns are only 3% due to Dividend distribution tax and returns are added as units which needs to be pledged again.

Please work on this as other brokerages are providing this feature.

1 Like
#8

I’m waiting very badly for pledging of mf, finally moved to other brokers as I need margin.

#9

Can you tell me which broker?

#10

sharekhan

#11

I already ask zerodha yaar more than 1. 5 years they r not consider to pledging mutual fund unit , because margin are already increase our trading capacity also decrease , if we ask they are replying frequent reply only, i invest around 40 lakhs in liquid bees they giving only 10k as interest , i am planning to move to angel broking they are allowed to pledge liquid fund , same brokerage they agreed to offer for me ,because every month i pay as brokerage to zerodha around 20k same i can pay angel no problem i can get good return from liquid fund as 7.5% , i really happy, why i want to stick with zerodha for nothing , it’s a simple process pledging money is given by NSE what problem for zerodha i dont no …

1 Like
#12

@nithin why yo are not replying

#13

This will take more time, we are building a new pledging/unpledging process which is taking more time than we thought it would. This will have MF pledging, instant pledge/unpledge, etc.

2 Likes
#14

Would it be possible to give an eta on this?

Will it be a month away from now or a year?

Thanks a lot!

#15

Hai PAYTM Discount broker is coming soon most of the zerodha customer will shift to paytm , lot of discussion is going on social media . this zerodha is not allowed to pledge mutualfund , paytm will provide all these thing in twitter page they posted , we dont wnat to bring new money , we can pledge mutual fund except ELSS , i am waiting expected with in 2 months Ya ya ya

1 Like
#16

Without competition there is no intention on anything.

#17

We are testing our new DP process, I am guessing two months before we can go live.

#18

Could please guys clarify this all for me, lot of info on that forums is very very complicated but I am trying to get a grasp of it. I see it as something in this thread like you have some income from fixed deposits and from mutual funds and want to trade with that income, correct ?

#19

The thing is now zerodha allowing us to pleadge individual shares what we requesting is let us pleadge FD and MF.

#20

Now with zerodha one can pledge equities and get collateral to trade with, soon we will allow to pledge MF to get collateral to trade with.