Margin trading facility (MTF) is quite common in stock trading. The broker typically provides you with additional leverage for trading, allowing you to buy shares for a value that is even up to five times the funds available to you through MTF. With gold prices continuing to rise, HDFC Securities has now come up with an MTF for gold ETFs (Exchange Traded Funds).
HDFC Securities allows eligible investors to take leveraged exposure to gold as an asset class with up to 70% of the investment amount funded through MTF, subject to prevailing risk and market conditions. You have to pay an interest of 1% per month on the funded amount.
So, if you want to buy gold ETFs to the tune of ₹2 lakh, you could bring ₹60000 of your own funds and borrow up to ₹1.4 lakh. The MTF is available on its investing platform HDFC SKY, where users can buy units on both the mobile app and on the website.
Gold ETFs among top-performing assets in 2025
Gold ETFs have emerged as the second-best performer among widely traded assets in 2025, surging by 72% so far in the year, ranking only behind silver that has gained by a whopping 128% during the timeframe. 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%.
“The eligibility 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,” 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,” said Dhiraj Relli, MD and CEO, HDFC Securities. “By making HDFC Gold ETF available under the 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,” he said.
Risk controls, costs, and investor advisory
HDFC Securities already offers funding for index, sectoral, and thematic ETFs through its BSPL (Buy Stocks Pay Later) framework. “Standard MTF risk controls will continue to apply, helping investors manage leveraged positions prudently over the permitted holding period,” it said.
“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,” HDFC Securities said.
Gold ETFs seek to generate returns aligned with the performance of gold, offering a convenient, low-cost, and demat-based way to participate in the fortunes of the precious metal without the hassles of physical storage.
Allirajan M is a journalist with over two decades of experience. He has worked with several leading media organisations in the country and has been writing on mutual funds for nearly 16 years.
