Mutual Fund Pledging In Dhan

Hello Dhan Community,

I have invested in a Mirae Asset MF directly using their own portal.

As Dhan recently started their Mutual Fund platform, I have two questions -

  1. Can I transfer my Mirae Asset Mutual Fund units from their portal to Dhan?

And

  1. Can I pledge those MF units in Dhan for margin?
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Hi @Sayantan

Let me answer the both for you…

a. You can transfer via MF Central to Dhan, we will build features to let you transfer your MF units to Dhan in few months.

b. Please not that if you have purchased via AMC website, most likely it is in SOA format and not in demat format. For pledge, at this moment we allow you to only pledge for Stocks & ETFs, not MF units.

Also at the moment MF units invested via Dhan are in SOA format, not in demat. For pledge, at the moment MF units have to be in demat format.

Hey @PravinJ ,

Thanks for the prompt reply.

So, it seems like pledging MF units in Dhan is a long way down the road.

Will you guys provide any update when the MF pledging feature becomes available?

Yes, this will take a while.

On our list of things to do for 2024, but we are far away from it. There is lots to deliver from the list we have shared here:

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Hi, @PravinJ It might be of less priority for you. But look from traders perspective I being a Dhan user and option seller do want to get some extra income from my unused funds. So, during market dips we could accumulate mutual fund in less NAV and pledge it for option selling. Being Option seller it is the highest priority thing for us. You should also listen to clients need. As option sellers usually trade with big amount for us getting 6-8% extra income from our funds make sense.
I have one more question hope i would get answer from team Dhan
question: If i buy mutual fund in zerodha and transfer it to dhan could i pledge it after that?
Thanks in advance.

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Any update on pledging dhan mutual fund

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Hi @amitranj,

Thanks for sharing your feedback with us. We understand the importance of maximizing returns on your unused funds, especially for option sellers like yourself. While we are actively considering all client needs, implementing the ability to pledge mutual funds involves complex policies and restrictions that require thorough evaluation.

Rest assured, once we have finalized the pledging process, we will promptly notify you.

Thanks for your continued support and for being a part of our community.

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Thank you @Kiran. Could you provide any timeline by when Dhan is planning to implement this. Thanks again.

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@amitranj, Currently, we do not have a specific timeline for implementation, but we will keep you updated once we have more information.

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Its been more than two months… any update?
This is a very important feature, hope you guys are doing something about this and not just lip service.
You are leaving me with no option but to move to another broker.

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Hi @spbalajee,

We are exploring this, Its in our roadmap and you can expect to see them on Dhan over the next few quarters.

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Next 1-2 quarters would have sounded nicer. :sweat_smile: @Saurav.P

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Happy that you said next few quarters and not years. So, I assume it should be available in at least a year (4 quarters).

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What will happen if we already invested in mf and stored in SOA and you came up with demat storing is possible to change that SOA to demat or need to redeem and reinvest ?

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Hi @Balasv52 You will have to sell and reinvest, or rather invest fresh. Converting to demat and remat are not options that are available.

Any timeline for mutual fund pledge, eagerly waiting for this feature.

This will take a while @Balasv52. It is like rebuilding the entire Mutual Fund product from scratch, not a easy thing. I guess I have mentioned this earlier as well, no one in industry does dual transaction formats - SOA & Demat together.

Greater chance that it could be done <6 months from now?

@PravinJ Thank you for keep hope alive for MF Pledge. its seems that you were introduced MF- SOA feature in hurry.

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May be implementing SOA will be easier.