HDFC Securities Launches Margin Trading Facility (MTF) on Exchange Traded Funds (ETFs)

 Empowers investors to build positions up to 4 times through Margin Funding on ETFs

• 74 ETF schemes available for margin trading on InvestRight and HDFC SKY
• Research recommendation on ETF for ease of decision making

Bengaluru, July 21, 2025: HDFC Securities, one of India’s leading stockbrokers, today announced the launch of its innovative Margin Trading Facility (MTF) on Exchange Traded Funds (ETFs). This new offer is designed to enhance customer flexibility in trading and improve capital efficiency by providing access to margin funding for ETF transactions thus democratizing ETF investments.

Under the new MTF facility, customers can avail themselves of funding at a competitive daily interest rate, making margin trading on ETFs more accessible and cost-effective. This service allows customers to access up to 4 times their invested amounts, providing greater leverage and liquidity for trading ETFs. These cover major indices, sectoral, thematic, fixed income, commodities and international indices, all available through both InvestRight and HDFC SKY platforms.

Currently, there are 74 unique ETFs available for margin trading on InvestRight and HDFC SKY. The minimum upfront margin required for ETF margin trading is 25%, which may go up to 40% depending on the scheme.

Customers will also find a dedicated section on the InvestRight and HDFC SKY applications, where they can conveniently monitor all MTF-related transactions on a single screen. This integrated platform ensures transparency and ease of tracking, empowering investors with real-time insights into their margin trading activities. Furthermore, investors have the flexibility to convert their margin positions into delivery at any time, providing greater control over their investments.

Commenting on the launch, Mr. Dhiraj Relli, MD & CEO, HDFC Securities stated, “Our new MTF offering on ETFs is designed to provide our clients with enhanced investment opportunities and greater capital efficiency. ETFs have gained significant popularity in India due to their straightforward nature, lower costs, and ease of understanding, making them attractive to a broad spectrum of market participants. They offer diversified exposure across various sectors, enabling investors to participate actively in India’s growth narrative. Consequently, ETFs have become a vital component of the evolving investment landscape in the country, with their affordability and diversification aligning well with market needs and positioning them as a compelling investment option in India’s dynamic economy.”

“The ETF market presents a significant growth opportunity, with total assets under management (AUM) reaching approximately Rs. 8 Lakh Crore as of December 2024. This marks an increase from around Rs. 6.95 Lakh Crore as of March 2024. When compared to the overall AUM of the mutual fund industry, ETFs account for roughly 12-13%, indicating consistently increasing demand towards the asset class.”

“However, it is important to recognize that the margin trading facility (MTF) introduces certain risks. The use of leverage can magnify losses, and traders are required to maintain appropriate margin levels to avoid the risk of liquidation. Consequently, prudent risk management and caution are essential when engaging in leveraged ETF trading. Our research note on ETF helps in guiding investors to the theme/sector we have positive view,” added Mr. Relli.

HDFC Securities remains committed to continuous innovation and expanding its suite of investment services, supporting investors in achieving their financial goals with greater convenience and confidence.