Can I get Limits to trade against my Mutual Fund Holdings?

Can I get Limits to trade against my Mutual Fund Holdings?

Yes. You can. Depending on the type of mutual funds and their features, we have categorized Schemes, where the holdings can be used to give you an additional limit to trade in Equity markets.
  1. The limit provided will be a percentage of the holding depending on the category of the fund. For example Liquid funds can give you a 100% limit.
  2. Therefore a holding of 1 Lac in mutual funds can allow you to trade in stocks up to Rs. 1 Lac.
  3. However any payments to be made for delivery of the shares that you buy must be transferred by you within the settlement timelines.
  4. Many customers also prefer to redeem their mutual fund units when they wish to pay for stocks that they have bought.
 


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