What is MTF in Groww?

MTF stands for Margin Trading Facility. In MTF, the investor buys stocks at a lower price than the original stock price. The broker pays the remaining amount on behalf of the investor. However, the broker charges a daily interest rate. It is also known as "Pay Later."

Steps to Activate MTF in Groww

1. Open the Groww App.

2. Search for the stock that you want to purchase.

3. Tap on the “Buy” option.

4. On the orders page, select the MTF option.

5. Now set the quantity and price.

6. Tap the “Buy” option.

In this way, the MTF order will be placed successfully

Benefits of MTF in Groww

Profit:

Profit depends on the investor's analysis. If the analysis of a stock is accurate, then investors can make profits. This is because MTF investors can place orders even if they don’t have sufficient capital.

More Purchasing Power:

MTF allows investors to buy expensive shares. Additionally, investors can easily invest in the stock market.

High Returns:

This can help investors earn higher returns on their investments.

Portfolio Diversification:

MTF helps in portfolio diversification. Investors can utilize the remaining funds for valuable investments.

Short-Term Gains:

MTF is valuable for short-term gains.

Tax Saving:

Investors can also save on taxes while trading with MTF.

Disadvantages of MTF in Groww

Losses: As long as the market goes up, investors can make a profit. But when the market goes down, a certain amount of loss can occur.
Interest Cost: A daily interest rate can reduce the profit. If the interest rate increases, the investor will incur a greater loss.

How to check MTF charges

Check Groww MTF charges in simple steps :
1. Open the Groww App.
2. In the search bar, search “Groww Pricing”.
3. Tap on “Groww Pricing”, highlighted in green colour.

Therefore, the page will then redirect to the Groww website, where the pricing details will be displayed.

MTF Charges on Groww

Brokerage: A brokerage charge of 0.1% applies to every order.
Interest Charges: For a funded amount below 25 lakhs, the interest rate is 15.75% per annum or 0.043% per day.

Conclusion

Therefore, MTF trading allows the investor to invest in large stocks without caring for the fund. And invest in stocks that can give great returns in the future. However, investors have to care about the interest charges. So this is all about what is MTF in Groww? If you have any queries regarding the topic, you can comment below.