Introducing Mutual Fund Pledging - now live on Dhan!

Product Announcements 🔈
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Hello Everyone,

Over the past year, we’ve stayed focused on one goal making your investing journey smarter, more flexible, and aligned with your evolving financial goals.

In December 2023, with the launch of Mutual Funds on Dhan, we took a significant step by enabling you to invest in Mutual Funds alongside Stocks, ETFs, and Derivatives all in one place.

As always, we’ve been listening closely to your feedback and building features like Weekly SIPs, Top-Ups, and the ability to Track External Mutual Fund Portfolios. All inspired directly by your suggestions & feedback.

Here’s just a glimpse of what the community has been asking for…

Today, We’re Answering That. It’s Here.

Introducing Mutual Fund Pledging on Dhan

We’re excited to launch Demat Mutual Funds on Dhan - giving you even more power, flexibility, and control over your investments.

Mutual Fund Pledging by Dhan banner (1)
Mutual Fund Pledging by Dhan banner (1)975×488 300 KB

And that’s not all.

Dhan is now among the platforms in India that lets you invest in both SOA (Statement of Account) & Demat Mode Mutual Funds

Whether you’re building wealth steadily or trading actively, Dhan gives you the freedom to invest your way - with everything in one place.

To activate Mutual Fund Pledging on Dhan, all you have to do is:
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SOA vs. Demat Mutual Funds: What’s the Difference?

SOA Mode Demat Mode
Buying Option AMC or RTAs (CAMS, K-Fintech) Only via broker (Dhan)
Bank Support Link up to 4 banks Only Primary Bank can be used
Nominee/Address Update Manually via RTA Single, DP-level global update
Unit Allotment Fund confirmation basis Fund confirmation & +1 day allowed for pledging
Holding Nature Units held with AMC/RTA Units held with depository (CDSL)
Redemption Payout Credited to linked bank in Folio Credited to primary bank account in your Demat account
Redemption Method OTP-Based T-PIN/DDPI Required
Pledging for Margin Not Available Available
Transfer to Family Complex via SOA transfer forms Seamless off-market transfer to family via broker/DP
Charges None ₹15 per ISIN all requests including pledge, unpledge and invocation.

Which Mode is Right for You?

  • Passive Wealth Builders: SOA mode may be suitable for those focused on long-term holdings without frequent transactions, offering simplicity and cost savings.​

  • Active Traders: Demat mode is perfect for those who trade frequently and want access to margin benefits, consolidated holdings, and flexible fund management.

Why Demat Mode Matters—Here’s What You Get

  • No Separate onboarding - Instant Activation
  • 1000+ Pledgeable Funds - Includes Liquid, Equity, Hybrid funds etc
  • Get Margin benefit credited less than 15 minutes.
  • Real-Time Margin short fall Alerts stay updated on NAV-driven margin changes.
  • Use Margin Across Segments – Equity, F&O, Commodities

Additionally, whether you’re “Topping-Up” your portfolio, Setting Monthly, Weekly & Daily SIPs, or using “Add to cart” feature — all supported in Demat mode

Most Asked Questions — Answered

Q. How do I activate Demat Mode on Dhan?
A. There are Multiple ways to get Demat Mutual Fund Activated

  • Already using Dhan for Mutual Funds
    Go to Mutual Fund Section > Click on “Portfolio” > Scroll Menu option toward left > Tap on the “Demat” option to activate

  • First-time investor
    Go to Mutual Fund Section > Click on “Portfolio” > Tap on “Activate Demat MF for Margin benefit” to Activate.

Q. What will happen to my existing Mutual Fund investment made through Dhan?
A. No change—they continue as they are.

Q. Can I convert my existing SOA mutual fund holdings to Demat Mode?
A. Currently, SOA to Demat conversion is not supported on Dhan.

Q. What all Mutual Funds are available for Pledging
A. Dhan supports over 1000+ schemes, including: Liquid Funds, Equity Mutual Funds & Hybrid Funds etc

You can check pledge-eligible funds directly in the Dhan app from the “Money” section or click here for the full list.

Q. I have transferred my Mutual Fund on Dhan. It is not reflecting on Dhan.
A. You can view the transferred Mutual Fund in the “Money” section under “Demat MF”

Q. What are the charges for pledging and unpledging?
A. ₹15 per request per ISIN + GST complete pricing is here

Q. How fast can I get the margin after pledging?
A. You’ll receive the margin benefit within 15 minutes of successful pledge.

Q. What are the timings for pledging and unpledging?

Timing Margin / Unit Credit
Pledge 9:00 AM – 9:00 PM After 4:00 PM: Margin credited next business day
Unpledge Till 3:00 PM Units added back next business day

Raise the bar,
Saurav Parui

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Finally it is here…Thanks @Dhan

@Saurav.P can you please check the link shared. It is giving 404 error.

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The release of this particular feature is a release I have awaited with great expectations. For my portfolio’s advancement, this functionality is likely the most critical element I required, and its delivery is a major milestone. My sincere appreciation goes out to @Dhan for successfully bringing this long-awaited and essential feature to fruition. Thank you for delivering on this pivotal requirement.

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Hi @t7support, request you to please check now. Thanks for highlighting.

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Working…Thanks @Sameet

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Thanks a lot Dhan @Saurav.P @Sameet @RahulDeshpande

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Dear Dhan Team,
Congratulations on launching demat-based Mutual Funds and MF Pledging. I’ve already started using it by porting my weekly SIPs, beginning this Monday.

Based on my initial experience and investment needs, I’d like to suggest a few enhancements that I believe would significantly improve the platform’s utility for users:

  • SIP Pause/Skip: Allow users to temporarily pause or skip upcoming SIP installments. This provides flexibility during fund shortages or perceived market overvaluation.

  • Systematic Withdrawal Plan (SWP): Introduce SWP functionality for users needing regular cash flow, periodic profit booking, or systematic withdrawals.

  • Inter-AMC Systematic Transfer Plan (STP): Enable STPs between funds from different AMCs. This would allow users to, for example, park a lump sum amount in a liquid fund like the ICICI Liquid Fund and then set up a weekly STP to systematically invest that capital into an equity fund from another AMC, such as the Parag Parikh Flexi Cap Fund. This capability is crucial for strategically deploying funds over time.

Thank you for considering these suggestions. I look forward to seeing the platform evolve.

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If i have some Debt Funds which are treated as cash components (GILT, Overnight etc) in Demat form in DHAN, and after pledging them, how are the margin requirements for the delivery trade is it 50:50 or something else?

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Hi @bhashab, Welcome to MadeForTrade community!

Thank you for taking the time to share such thoughtful and detailed suggestions.

We’ve noted your feedback regarding SIP Pause/Skip, SWP (Systematic Withdrawal Plan), and inter-AMC STP (Systematic Transfer Plan). These are indeed valuable features that offer investors greater flexibility and control.

Our team is already working on SWP feature also your inputs for STP and SIP Pause/Skip have been shared with our product team for further evaluation. Please stay tuned for future updates, and keep sharing your feedback with us

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Hi @thiru, if you have a collateral balance as cash component you don’t need to maintain a 50:50 ratio.

Please note while buying Equity stocks in delivery you have to maintain sufficient cash balance on your ledger as The amount will be debited, resulting in a negative ledger, which triggers the T+5 ageing debit square-off policy.

You may refer post below for more details.

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Hello @Mohseen_Usmani

I’d appreciate if this page could also be updated with the margin benefits for the mutual funds schemes eligible for pledge.

Thanks!

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First of all kudos to the team for launching this.
Is this feature of investing in demat format via primary bank a limitation?
Because, zerodha’s coin lets users invest via secondary banks as well.
If possible, please enable secondary bank accounts for demat MF’s as well because it’s a hassle to transfer money from secondary to primary bank accounts every time.

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Hi @thisisbanerjee,

Yes, we’re working on bringing a consolidated view of Margin Benefits across all segments like Mutual Funds, Stocks, ETFs. So it’s all in one place and easy to understand.

For now, you can check out the full list of pledge-eligible Mutual Fund schemes here

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Hi @specter

Thank you so much for the kind words - it truly means a lot! We’re really glad to see your excitement around Demat Mutual Funds & Pledging on Dhan.

To your question- Yes, at the moment, Demat Mutual Fund investments on Dhan can be made only through the primary bank account linked to your Dhan account. This isn’t a platform limitation but rather how the system is structured under CDSL’s depository framework.

Since your Mutual Fund units in Demat mode are held just like stocks in your CDSL account, all related transactions especially redemptions are required to be processed through the primary bank. So when you redeem your units, the amount is credited directly to this bank account. This ensures everything stays consistent, secure, and fully compliant.

That said, we completely understand the need for more flexibility - especially for users who manage funds across multiple accounts. While we’ve kept things streamlined for now to ensure reliability, we’re actively listening and will keep exploring ways to make this even smoother going forward.

Really appreciate you highlighting this feedback.

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This is great news! However, even after enabling the feature I cannot pledge my existing Mutual Funds. Do I have to invest in new mutual funds to be able to avail the pledge feature? @Mohseen_Usmani

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Hi @thetribaltrader,

You can place a pledge request for units available in the Demat mode. If the units are held in SOA (Statement of Account) format, you will be unable to pledge them.

For any further assistance, feel free to write to us at help@dhan.co.

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Hello Dhan Team, How swing traders can leverage this, like if we hold a cash component MF’s in Demat form in Dhan (over night,Gilt Etc), how margins are considered for swing trades (ps. Delivery trades )

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How long does it take for mutual fund to be avialable for pledging?
i placed request on wed ( 7th may), it appeared in demat over weekends (10th may).
i can see the mutual fund in demat, but that is not appearing when trying to pledge.
fund is parag parikh flexi cap, which can be pledged as per the list.