Insights

MTF – Frequently Asked Questions

October 10, 2022 . Equities Desk

Who can invest in MTFs?

This product is suitable for clients with short-term goals.

How does MTF Works?

Clients willing to use additional margin can subscribe to our MTFs. Upon subscription, clients can buy stocks up to 4 times their invested capital

Does FundsIndia offer MTFs for all the stocks?

We have got up to 900 stocks in our MTF category currently. This count is expected to increase in the near future.

Is there any expiration for the product?

Yes. MTFs can be used for up to 90 trading days from the date of trade initiation

Does FundsIndia provide recommendations for the purchase of stocks?

Yes. We offer our best-in-class research calls to our clients with target & stop loss and that too for free of cost. 

Who are eligible to avail MTFs with FundsIndia?

Anyone with a Demat account in FundsIndia can avail MTFs with us after subscribing to the product. There is no upper limit for MTFs. You can avail funds up to 4 times your capital. However, the fund margins are based on the stocks you choose.  

In which segment can I use MTFs?

Clients can avail MTFs only for equity investment. MTFs are not available for other segments of the market. 

How much should I invest in MTFs?

We recommend clients to make decisions of their own. However, suggestions on stocks and the number of stocks can be provided by your investment coaches at any time.

How soon to exit?

The market always tends to fluctuate. But, at FundsIndia we offer personalized recommendations from our experienced research team. Since usually, these recommendations are momentum picks, entry & exit are not time-oriented but recommendation based. 

What are the various charges associated?

There is a very minimal subscription fee to subscribe to MTFs. There are also interest charges of 24% per Annum for the funded value. For any other clarifications or further assistance, you can contact your assigned Relationship Managers.

I am a Self trader. How can I make maximum use of this product?

As a Self trader, you might have experienced a fund deficit during a trade. Also, you do your research yourself. With MTF, you can get your financial constraints rectified. In addition to that, you can always get personalized recommendations on stock selection based on your goals. This allows you to safeguard yourself from market volatility. 

What are all the criteria to decide the amount to be funded in MTF?

It is clearly based on the stocks, the investor wishes to invest in. However, we fund up to 4 times the capital the investor invest. 

How long should one follow MTF?

Market trends are always based on sudden market changes. There can be sudden ups and downs in the market. Hence, it is safer to enter and exit the market based on market research. Investors can utilize MTFs and invest in stocks for up to 90 trading days.   

How to get maximum profits from MTFs? 

Diversification is the key factor for making maximum & consistent returns. Any seasoned investor will never invest beyond 20% of their capital in one single stock. Averaging the script when stocks hit a stop-loss is one of the very common mistakes done by investors. Rather than averaging the loss, it is always advisable to sell your stock and reinvest in other stocks. Whenever an investor sells a stock that hits the stop-loss, it doesn’t mean a missed opportunity but a strategy to protect your capital. Hence, with MTF, investors can diversify their portfolios with multiple stocks. Staying invested continuously for a period of time of 2-3 years on various shares can offer investors a very significant return.

What are all the other services investors can avail of with an MTF subscription with FundsIndia?

We at FundsIndia offer personalized guidance for all MTF subscribers. Every client is assigned an investment coach and a relationship manager. All the coaches and managers are NISM certified with good experience in the market.  We assist our clients in placing orders in trades, periodic updates on their trades, etc. We also offer technical support and research-backed stock recommendations. This enables the clients to build wealth and reach their goals. 

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