Regarding margin

I have mutual fund investments.
According to market movements mutual fund valuations will keep changing.
If I pledged my mutual fund investment and received margin, if this received margin is based on INVESTED value or CURRENT value ?

I invested 1 lakh in MF whose current value is 2 lakh.
Will I get 1 lakh margin or 2 lakh ( For this question plz ignore haircut)

The collateral margin you get is based on the current value of the investment. If the current value increases, the margin too will increase. If the current value decreases, the margin will decrease. You can learn more about pledging here:

1 Like