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HDFC Securities enables gold ETF purchases with 70% margin funding at a 1% monthly interest rate.
HDFC Securities enables gold ETF purchases with 70% margin funding at a 1% monthly interest rate.
New offering: HDFC Securities has launched a margin trading facility (MTF) for investing in gold exchange-traded funds (ETFs).
Leverage allowed: Investors can fund up to 70% of the investment value through margin, while contributing the remaining amount upfront.
Interest cost: The borrowed portion under the MTF will attract an interest charge of 1% per month.
Investment access: The facility is available through HDFC Sky’s mobile and web platforms.
Example structure: For a ₹2 lakh gold ETF investment, an investor may pay around ₹60,000 as own capital and borrow ₹1.4 lakh via margin.
Eligible ETFs: Several gold ETF schemes qualify for this facility, though funding limits may vary depending on market conditions.
Market context: Gold ETFs have delivered strong performance recently, increasing investor interest in leveraged exposure.
Investor guidance: HDFC Securities highlighted that leverage can amplify gains as well as losses, and investors should evaluate risks and financing costs carefully.
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