More options for pledging in Overnight Funds

Zerodha Coin - Direct MF
1

To avoid institutional risk, can there be more option(s) to invest & pledge, wrt Overnight Funds? Right now, around 25 % of my account is invested in the ICICI one, and I want to increase it to around 70 %, but don’t want to put all of it in one place.
@nithin

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2

You can login to Coin and invest in other Overnight funds too.

3

I meant wrt pledging. Right now, there’s only one overnight fund which is there for that purpose (the ICICI one).

4

@Bhuvan

Sachin query was to invest & pledge. You have responded to the first one… what about the second one :>)

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5

Let me check this and we’ll figure if we can enable other funds as well. PS, we allow pledging of 6 liquid funds too.

6

Okay, the HDFC one has a higher AUM in fact…

Yup, was invested in two of them before, but want to shift in overnight funds for the time being.

7

1.) Yes for pledging purpose kindly add other overnight debt funds also like ‘Aditya Birla’ which also has the Lowest ‘Expense Ratio’ and HDFC which has the highest AUM.
P.S. Not having enough confidence in liquid funds nowadays.

8

AUM isn’t the only factor behind allowing pledging of a fund. It has to be part of the exchange collateral list and there should enough pledgable quantity allowed. Checking this out.
We’ll keep the list updated here

9

How much minimum quantity of liquidees should be bought for pledging . Current I have liquid etf F in holdings but don’t see pledge option there.

10

You can pledge even 1. When did you buy these units?

11

Near about two week ago.

12

Can you create a ticket here. we’ll have this checked.

13

i checked in google sheet and i think dsp liquid fund not supported for pledging. correct? Any specific reason to disallow the same.

14

@Bhuvan, any update on this?

15

@Bhuvan

We definitely need more overnight funds added that can be pledged specially now where retail investors are fearing liquid funds also.

Few top fund that I feel we should be able to invest & pledge:

HDFC Overnight
SBI Overnight
ABSL Overnight
Kotak Overnight
SBI Liquid Fund

1 Like
16

@nithin , with the new pledging rules coming up (or even if they weren’t), can something be done about adding more overnight fund options?

17

Yes, we will. With the new way of pledging, we will be able to do this.

18

@Bhuvan Can you please look into as to why ‘UTI Overnight fund’ is not included for pledging. I have invested in that one but later realised that it is not in Zerodha’s pledging list.