Hi Community,
I have been going through a lot of brokers off late, and I was excited to see the pledge functionality available here at Dhan!
But, I see different replies (contradictory) as I ask more questions.
My question is - If I pledge an aggressive hybrid fund for example and I get a margin of 80K - can I use this margin for taking MTF? If yes, are there any limitations that I should consider or look into?
Mutual Funds can’t be used to trade in MTF as of now. In fact, no where in the industry can you trade in MTF by pledging MF, so if it comes, it’ll probably come on Dhan first.
Thanks for clarifying this! Can you please help with the following:
By pledging mutual funds -
a) Can I take delivery of stocks
b) Can I take delivery of ETFs?
c) MTF - You said, its not feasible. So, aligned and understood!
By pledging stocks:
a) Can I take delivery of stocks
b) Can I take delivery of ETFs?
c) Is MTF allowed?
By pledging ETFs:
a) Can I take delivery of stocks
b) Can I take delivery of ETFs?
c) Is MTF allowed?
Thanks for any added inputs. I am primarily trying to understand what asset I have can be leveraged to avail margin, and where can I use that margin.
Intraday, F&O is not my cup of tea. So I am looking for the above options.
Cheers,
Only F&O against MF pledged margins FOR NOW. Expect something positive on this from Dhan in the future.
Delivery in the form of MTF. No brokerage allows pledged margin for delivery trades or holding beyond T+5 days, few brokerages like Dhan, allows delivery but in the form of MTF.
This is for both stocks and ETFs. 