How can I pledge mutual fund investments to get collateral margins on FYERS?
FYERS allows you to pledge approved mutual fund units to receive collateral margin, which can be used for trading in F&O or currency derivatives. This way, you retain your investments while unlocking trading leverage.
Overview of mutual fund pledging
Pledging lets you use the value of your mutual fund holdings as margin collateral. The margin benefit is calculated after applying a SEBI-mandated haircut. Once pledged, the units remain in your Demat account but are marked as 'Pledged'.
Only approved overnight and liquid debt mutual funds are eligible for pledging.
Steps to pledge mutual funds on FYERS
- Log in to FYERS (Web or App).
- Go to the Portfolio section.
- Click the Holdings tab, then select the Pledge tab.
- Choose the mutual fund scheme you want to pledge.
- Enter the quantity or value to pledge.
- Complete OTP-based authorisation on the CDSL/NSDL portal.
Margin benefit typically reflects by T+1 working day.
What If...
| Scenario | Explanation |
|---|
| Mutual fund not appearing in the pledge list | Only ISINs approved by the exchange are shown under the Pledgeable tab. |
| Margin not reflecting after pledge | Margin is available only after successful pledge confirmation and settlement cycle. |
| Want to unpledge mutual funds | Use the 'Unpledge' option in the Pledged tab to release collateral. |
| NAV of pledged fund decreases | Your collateral value may reduce, impacting your margin availability. |
You continue earning returns on pledged mutual funds. However, you cannot redeem them until they are unpledged.
Last updated: 16 Jun 2025
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