Margin against Fixed Deposit and MF


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?

1 Like

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.

1 Like

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

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.


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

@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.


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

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

Can you tell me which broker?


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

@nithin why yo are not replying

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.


Would it be possible to give an eta on this?

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

Thanks a lot!

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

Without competition there is no intention on anything.

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

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 ?

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

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.