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.


#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 …


#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.