HDFC Securities Revolutionizes ETF Investments with Margin Trading

HDFC Securities has launched a margin trading facility on ETFs via its InvestRight and HDFC SKY platforms, offering leverage of up to four times the investor's capital. Covering 74 ETF schemes, the facility provides competitive interest rates and empowers users to monitor positions in real time.

On Monday, HDFC Securities announced the introduction of its margin trading facility (MTF) for Exchange Traded Funds (ETFs), marking a significant step forward for investors seeking to leverage their capital. Offered through the InvestRight and HDFC SKY platforms, this facility allows for leveraging up to four times the initial investment.

The initiative encompasses 74 ETF schemes, spanning major indices, sectors, commodities, and international themes, with funding available at competitive daily interest rates. According to HDFC Securities, the minimum margin requirement starts at 25%, potentially reaching 40% based on the scheme.

A specialized section on the platforms is dedicated to real-time tracking of MTF positions. "ETFs have gained significant popularity in India due to their simplicity, cost-effectiveness, and accessibility," noted Dhiraj Relli, MD & CEO of HDFC Securities.

(With inputs from agencies.)