Mumbai: HDFC Securities has launched a Margin Trading Facility (HDFC Securities MTF) on Exchange Traded Funds (ETFs).
This new offering enables investors to leverage up to 4 times their capital, providing enhanced liquidity and greater exposure to one of India’s fastest-growing asset classes.
The HDFC Securities MTF service is now available across 74 ETF schemes via both InvestRight and HDFC SKY, encompassing a wide range of indices – including sectoral, thematic, commodity, fixed income, and international ETFs.
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With competitive daily interest rates and a minimum upfront margin starting at just 25%, the HDFC Securities MTF facility aims to make margin trading more accessible and cost-effective for retail investors.
“Our MTF offering on ETFs is designed to enhance investment flexibility and capital efficiency for clients,” said Dhiraj Relli, MD & CEO, HDFC Securities. “As ETFs gain traction in India for their simplicity, low cost, and diversified exposure, the HDFC Securities MTF launch aligns with the evolving needs of modern investors participating in India’s growth story.”
Key Features of the HDFC Securities MTF on ETFs
- 4x Leverage: Investors can build larger ETF positions through margin funding.
- Coverage of 74 ETFs: Includes major indices, sectors, fixed income, commodities, and global markets.
- Low Entry Barriers: Minimum margin requirement of 25% (varies up to 40% by scheme).
- Integrated MTF Dashboard: Users can track all margin positions in real time via InvestRight and HDFC SKY.
- Delivery Conversion Option: Margin trades can be converted to delivery holdings for added flexibility.
- Research Support: The platform offers ETF recommendations to guide investors based on themes and sectors favored by HDFC Securities’ analysts.
The ETF market in India is witnessing rapid growth, with total assets under management (AUM) reaching ₹8 lakh crore as of December 2024 – up from ₹6.95 lakh crore in March 2024. ETFs now represent about 12-13% of the mutual fund industry’s AUM, reflecting rising investor interest in passive and diversified investment vehicles.
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However, HDFC Securities also emphasizes risk awareness, urging investors to maintain adequate margin levels and exercise caution with leveraged trading, as MTFs can magnify both gains and losses.
“MTF can be a powerful tool, but responsible usage is key,” added Relli. “Our research-backed recommendations will help investors make informed decisions.”
With this launch, HDFC Securities continues to strengthen its position as a forward-thinking investment partner, committed to empowering investors with innovative, tech-enabled, and goal-oriented solutions.
