Can I use mutual funds as collateral for trading in the F&O segment on FYERS?
Yes, FYERS allows you to pledge eligible mutual fund units to receive collateral margins for trading in the F&O (Futures and Options) segment. This can be a strategic way to use your mutual fund holdings to enhance your trading capacity—without liquidating your investments.
How does mutual fund pledging work?
Pledging lets you use your mutual fund units as security in exchange for margin, which you can then use to take positions in F&O. You continue to remain the owner of the mutual fund units and also enjoy any dividends or NAV growth, while simultaneously unlocking margin for trading.
Important considerations
- Only select mutual funds are approved for pledge by the clearing corporation.
- These funds must meet liquidity, credit quality, and asset class eligibility norms.
- The haircut (reduction applied to the collateral value) varies by scheme type.
Where to check which mutual funds are pledge-eligible?
You can view the updated list of mutual funds and other securities eligible for pledging on FYERS by visiting:
What if?
| Scenario | Explanation |
|---|
| Your mutual fund is not in the eligible list | It cannot be pledged. Consider switching to a pledge-eligible scheme if you need margin. |
| You pledged a fund but no margin is received | Check if the pledge was approved and margin updated. Delays may occur if the fund is re-evaluated or unapproved. |
Always verify eligibility and applicable haircut before pledging to ensure sufficient collateral is available for your trades.
Last updated: 10 Jun 2025
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