- Main
- Funding
- Pledging Mutual funds
- Can I use the entire margin received after pledging mutual fund units?
Print
Can I use the entire margin received after pledging mutual fund units?
Posted
Updated
ByManoj
No. You cannot use the entire margin amount for trading. You can only use a maximum of 50% of the margin amount. For example, if you pledge Rs 1 lakh worth mutual funds, you will receive a margin amount after 10% haircut i.e. Rs 90,000. Now, if you purchase a scrip for Rs 60,000, only Rs 30,000 can be used from the margin. For the remaining Rs 30,000, you have to bring in cash or cash equivalent.