With this addition, HDFC SKY users can buy units of HDFC Gold ETF on both the mobile app and web, while availing up to 70% funding under MTF and paying interest as per applicable MTF pricing (currently 1% per month on the funded amount). Standard MTF risk controls will continue to apply, helping investors manage leveraged positions prudently over the permitted holding period.

HDFC Gold ETF is an exchange-traded fund that seeks to generate returns aligned with the performance of gold, offering a convenient, low-cost, and demat-based way to participate in the precious metal without the hassles of physical storage. It also provides investors with portfolio diversification benefits and a potential hedge against market volatility and currency-related risks.

By enabling HDFC Gold ETF under MTF, HDFC Securities is expanding the universe of ETFs that can be purchased using leverage on HDFC SKY, alongside a growing list of index, sectoral, and thematic ETFs already available through its BSPL (Buy Stocks Pay Later) framework. Investors can monitor, top up, or square off their MTF positions seamlessly through HDFC SKY’s intuitive interface, which is designed to make advanced trading tools accessible to a wider base of retail investors.

Commenting on the launch, Mr. Dhiraj Relli, MD & CEO, HDFC Securities, said, “Gold continues to be a core allocation for Indian investors, both as a store of value and as a diversifier in volatile markets. By making HDFC Gold ETF available under Margin Trading Facility on HDFC SKY, we are giving our clients the flexibility to take calibrated, leveraged exposure to gold in a transparent, digital, and cost-efficient manner, while benefiting from the risk management guardrails built into our MTF framework. This is another step in our broader vision of using technology and product innovation to help investors build smarter, more resilient portfolios.”

In addition to HDFC Gold ETF, several other gold ETFs, including schemes from SBI, ICICI Prudential, Tata, Kotak, Axis, Mirae Asset, Zerodha, UTI, and Groww, are also available for MTF on HDFC SKY with funding levels typically ranging up to 60–70%, given that eligibility and percentages may change with risk and market conditions. This extended gold ETF basket provides investors with multiple options to access gold through a combination of diversified instruments and prudent leverage.

Investors are advised to carefully assess their risk appetite, understand MTF-related interest costs and terms, and read all relevant documents before availing the Margin Trading Facility. Leveraged investing can amplify both gains and losses, and is best used as part of a disciplined, long-term financial plan.

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·         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.

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Bengaluru, October 25, 2024 – HDFC SKY, one of India’s premier discount broking platforms, is excited to announce a transformative set of offers aimed at significantly lowering transaction costs for its valued customers. The company has implemented a substantial 20% reduction in the interest rate for its Margin Trading Facility (MTF), decreasing it from 15% to a competitive 12% per annum, which translates to just 1% per month. In a further bid to support investors, HDFC SKY is now offering zero brokerage fees on transactions involving Exchange-Traded Funds (ETFs). These strategic enhancements are designed to elevate the customer experience, foster new investment avenues, and democratize trading options for users across the board.

“At HDFC SKY, our mission is to prioritize the financial interests of our clients,” said Mr. Dhiraj Relli, Managing Director & CEO of HDFC Securities. “Reducing our MTF interest rate and eliminating brokerage fees on ETF trades solidifies our commitment to providing cost-effective financial solutions. We are confident these changes will empower our clients to refine their trading strategies and maximize their investment outcomes.”

Mr. Relli elaborated on the advantages these adjustments bring, stating, “Investors now can lower their borrowing costs with our MTF, allowing them to increase their investing potential without the financial strain of high-interest payments. Furthermore, the removal of brokerage fees on ETF investments facilitates portfolio diversification, motivating broader engagement in the capital markets.”

Mr. Sandiip Bhardwaj, Chief Operating & Digital Officer at HDFC Securities, highlighted the significant benefits of both the MTF and ETFs, explaining, “Our Margin Trading Facility provides investors with amplified buying power, paving the way for enhanced returns, greater diversification, and increased flexibility in trading and payments. Additionally, ETFs offer a sophisticated asset class with flexibility; they undergo regular rebalancing and can be traded seamlessly, an option which Mutual Funds don’t offer.”

“With HDFC SKY, investors have access to a comprehensive array of 219 listed ETFs, opening doors to enhanced diversification, lower transaction costs, improved liquidity, transparent pricing, heightened tax efficiency, and exposure to a variety of sectors and asset classes,” Mr. Bhardwaj added.

HDFC SKY is also dedicated to providing market participants with research-driven insights from a team of in-house analysts who specialize in both fundamental and technical evaluations, assisting investors in making informed decisions.

The platform boasts a comprehensive suite of analytical tools, including technical charts, historical data, price alerts, and stop-loss recommendations, to further guide clients in their trading journeys. Investors can explore an array of ETFs, including Index ETFs, Gold ETFs, and specialized options focusing on sectors like banking, infrastructure, liquid assets, and international markets.

The recent reduction in MTF interest rates, alongside the introduction of zero brokerage on ETFs, underscores HDFC Securities’ ongoing commitment to delivering value-driven financial services tailored to the needs of its clients.

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