If you want to increase your returns without selling off your existing shares, then the best option for you is to hire the services of various financial service providers who will help you with margin funding. It is the best way you can utilize the shares that are already present in your portfolio. It is the best way to get higher returns without investing much of your own money. This gives the investor a lot of scopes to invest in the market that will otherwise not be possible because of lack of finance. Such Margin Funding services are provided to various types of borrowers like retail and HNI, HUFs, HNIs, and even corporate entities.
Easy Financing Option
With this funding option, you can get financing for any kind of investment in the mutual fund schemes and the primary market issues. So regardless of your finance plans and goals margin finance is beneficial for you and all the other investors like you. You can avail these services for any pre-approved list of securities so you can utilize this easy and reliable source of financing if you want to diversify your portfolio. But you need to know that all such financing options are subjected to a predefined haircut for the margin.
Investors Who Need It
Purchasing additional securities has been made so much easier by these firms with their easy funding options. This is why Margin Funding is popular among the investors for gearing of the various investment portfolios. All you have to do is pay only a part of the entire purchase value but if you want you can also pledge all your existing approved securities as the margin. While you pledge the securities the balance amount of the purchase value will be funded by the NBFC. So if you do not want to sell your existing portfolio and wish to diversify your investment, then this is the best option for you.