How do ELSS funds help in saving Income Tax? Can I Pledge it to trade in F&O segment?
Equity Linked Savings Schemes (ELSS) under section 80C of the Income Tax Act, 1961. These schemes are growth-oriented and invest pre-dominantly in equities. Their growth opportunities and risks associated are like any equity-oriented scheme.
ELSS can be invested using both SIP (Systematic Investment Plan) and lump sums investment options There is a 3 year lock-in period. You will get a tax deduction up to ₹ 1.5 lacs and the profits from ELSS schemes are subject to LTCG similar to equity.
1. Any lock-in period Mutual Funds purchased on FYERS Direct will not be visible under 'Holdings' in 'Dashboard'. Once the Lock-in period completes, the same will be visible.
Can I buy Mutual Funds and pledge to get collateral?
Yes, you can invest in Mutual Funds and pledge them to get additional margins to trade in the F&O Segment. However, not all mutual funds are accepted for pledge. For the list of Securities and Mutual Funds that are available for the pledge, click ...
Can I pledge my Fixed Deposit to trade in F&O contracts?
Currently, Fixed deposits are not available for pledging to trade in F&O due to operational and reconciliation constraints. However, we might come up with such a facility in the future. You can check out the list of approved securities and Mutual ...
Where can I find the list of Cash Equivalent Securities and Mutual Funds?
There are around 350+ Securities and Mutual Funds that are considered as cash equivalent by the exchange. These securities will be considered as cash component when trading in F&O Segment. For Instance, Mr. X has Liquidbees of ₹10 Lakhs in his ...
What is a Haircut and how does it impact the pledge margin?
Haircut is the difference between the Market value of the securities and the value available after pledging such securities. Haircut is deducted to account for the uncertainties in the market. For Instance, A client, Mr X, has 1000 Qty of Reliance ...
What will happen if my Intraday F&O positions are not squared off by EOD?
Your intraday positions will be auto squared off by our RMS after reaching a threshold time to do so. For Equity, F&O, Currency and commodities segment the intraday square off will commence 15 minutes before the market closes. However, it is ...