Building Wealth with pledged margin

As any strong and sustainable building requires a strong foundation, to build your wealth you need to create a good foundation. The foundation should be made of reliable and sustainable materials. Similarly your wealth should be build on strong and sustainable financial elements.

Following list of financial elements are treated equivalent to CASH

ETF
SGB
G-Sec
T-Bills
Sequre MF

Selecting pure strength would make the foundation rigid and loose its agility. That is why we must mix some Non-Cash elements which are relatively more riskier compared to CASH elements.

Equity
MF

A strong wealth foundation should be mix of both . Then only you will get secured and sustainable good return. An example of balanced split would be as follows.

For a total fund of	1000000
Cash	500000		Non-Cash		500000

		Value post haircut			Value post haircut
SGB	100000	90000	Motilal Oswal Midcap Fund	70000	63000
G-Sec	200000	180000	HDFC Non-Cyclical Consumer Fund	70000	63000
Gilt Fund	200000	180000	Kotak Manufacture in India Fund	70000	63000
			Invesco India Smallcap Fund	70000	63000
			DSP Banking & Financial Services Fund	70000	63000
			ICICI Prudential Infrastructure Fund	70000	63000
			Axis Global Equity Alpha Fund of Fund	70000	63000

Here less fund is allocated for SGB(Sovereign Gold Bond). As of today 23rd Aug 2025 Gold has given a good run of 100%. From 2023 till date , after analysis of following gold bond chart it was decided to not put much in SGB. As it has appreciate much touching upper Bollinger band and 18% above Moving Average. A correction in gold price is expected.

So one must decide on split and percentage of split based on some basic analysis like above. But overal idea and structure remain same.

Once you split your capital in above financial elements. Foundation building is done. But having only a foundation is not enough. We have to use that foundation to build a wealth tower.

To achieve that we have to pledge our foundation to get margins. Margin is like the bricks which we use to build the tower over our foundation.

For above example a margin of 9L would be received post haircut. This margin could be used in F&O for secure strategies like Bull-Call-Spread/Bull-Put-Spread/Bear-Call-Spread/Bear-Put-Spread depending on market trend and your analysis of the market

Following is an example of Bear-Call-Spread.

It should give you 1% per expiry ( In NIFTY it is weekly )

By deploying above plan you would earn from both your base/foundation ( Cash and Non-Cash) and weekly spreads. Base should give you an average of 12-20 % return and your spreads will result in 40-60% per annum .

Building Wealth with pledged margin

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