What is MTF in Groww?

MTF means Margin Trading Facility. In MTF the investor buys the stock at a lower price than the original stock price. The broker pays the remaining amount on behalf of the investor. However, the broker charges daily interest rates. It is also known as pay later. 

How To Activate MTF in Groww?

Activate MTF in Groww with the given steps :

1. Open 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 analysis of the investor. If the analysis of a stock goes very well then investors can make profits. Because MTF investors can place the order even if they don’t have sufficient capital.

More Purchasing Power: Allows the investor to buy expensive shares. Also, the investor can easily invest in the share market.

High Returns: This can help the investor in getting high returns on their investments.

Portfolio Diversification: Helps in the diversification of portfolio. An investor can utilise the remaining funds in valuable investments.

Short-Term Gains:  For short-term gains MTF is valuable.
Tax Saving: Investors can also save tax while doing MTF trading.

Disadvantages of MTF in Groww

Losses: As long as the market goes up investors can make a profit. But when the market goes down then a certain amount of losses can occur.
Interest Price: A daily interest rate can cut down the profit. And if the interest rate increases then the investor has to incur more loss.  

How to check MTF charges

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

Therefore the page will be redirected to the groww website where the pricing will be shown.

MTF Charges on Groww

Brokerage: For every order the brokerage charge is 0.1%.
Interest Charges: Funded Amount < 25 lakhs: 15.75% per annum or -0.043% per day.
Funded Amount > 25 lakhs: 9.75% per annum or -0.027% 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 for the interest charges. So this is all about what is MTF in Groww? If you have any queries regarding the topic you can comment down below. Also, read our articles here at retirewithrohit.com