i’m planning for a Life event so my purpose is to invest some amount every month and withdraw it back whenever i want. so basically i need freedom to stop the investment and withdraw funds when i want to and also pledge the units for collateral so i can use it for my trading margin.
for e.g. If i start SIP with let’s say 1000 per month, can i pledge the units for collateral in my trading? or what are the other options to invest every month with safety so that i don’t lose the money but still can use it as collateral and can withdraw funds at will without any Lock-in period?
In short, I want to Invest on monthly basis and use it as collateral but with freedom to stop investing and withdraw funds, also it should be safe investment so even if i don’t earn interest on it but should atleast get what i invested in first place so looking for an alternative of FD but to use as collateral as well. Is this possible?
Yes, you can do SIP in Mutual Fund’s and pledge the units you get to receive collateral margin for trading, when you don’t need collateral margin for trading you can unpledge them and redeem your investments.
In investment, risk and reward go hand in hand. There is nothing as safe investment, every asset comes with inherent risk.
There are low risk products like Liquid and Overnight funds which you can explore. Would suggest you to learn more about them and make your own informed decision.
You can learn more on Liquid ETF’s here:
There’s also this module on Varsity which explores Debt funds in detail, do go through this for more information.