MTF – Frequently Asked Questions

October 10, 2022 . Equities Desk

Who can invest in MTFs?

MTFs can be used for up to 180 trading days from the date of trade initiation. Hence they are suitable for clients with short-term goals.

How does MTF Work?

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.

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. You can avail funds of 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?

MTF is time-oriented as it has an expiration period of 180 days from the date of initiation. So the customers can decide when to exit on or before 180 days.

What are the various charges associated?

There is no subscription fee for MTFs but there is an interest charge of 24% per Annum for the funded value. For any other clarifications or further assistance, you can contact your assigned Investment Coach.

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. 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.

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 invests. 

How to get maximum profits from MTFs? 

Diversification is the key factor for making maximum & consistent returns. Any seasoned investor will never invest over 20% of their capital in one 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, selling your stock and reinvesting in other stocks is always advisable. 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.

Assume person H invests in a stock S

Scenario 1: Without MTF Feature

Scenario 2: With MTF Feature (Availing 4X capital)

With MTF, he/she tends to get more returns.1

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 with an investment coach. 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.

Disclaimer: Investments in Securities markets are subject to market risks, read all the related documents carefully before investing. *T&C Apply

1-The above calculation is indicative only, not on an actual basis.

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