MF Pledge / Unpledge
Pledge / Unpledge Mutual Funds
No, you do not lose ownership of your mutual fund units when you pledge them on Dhan! Think of it like using them as collateral for a loan—you still own them, but they are temporarily locked because you are using them to avail margin benefits.
Here’s What Happens When You Pledge Mutual Funds:
Units Stay in Your Demat Account – Your mutual fund units remain safely held in your demat account, just marked as "pledged."
You Retain Ownership – You continue to be the legal owner of the units and still receive dividends, bonuses, and distributions from the mutual fund.
Pledged Status in Demat Records – The units are tagged as pledged, signalling to the depository that they are being used as collateral for margin trading.
No Impact on Fund Performance – Your pledged units still participate in the market as usual—the fund manager continues managing them based on the fund’s objectives.
To check your pledged mutual funds: Login to Dhan App > Money Tab > Pledged section.
You have Freedom to Unpledge Anytime as long as you have sufficient margin available and no outstanding trading obligations
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