With a minimum starting investment of Rs 3 lakhs.
Next, we will help you create your Demat Account with our partner AC Agarwal.
Then we will collateralize your mutual funds with the stock exchange.
For Rs 100 that you invest, you will be given a margin of Rs 75 to 80
So, for an investment of Rs 10 lakhs, the exchange will give you a margin of Rs 8 lakhs for derivative trading, the difference of the two lakhs is kept by the exchange to protect itself from market downsides - this is called a haircut.
Next, with margin money we would trade in low risk derivative trades on NIFTY or BANK NIFTY to generate the extra income of up to 12% p.a. *
Earn a monthly income, choose to redeem it for your expenses or reinvest it to benefit from compounding
Volatility in the markets increases option prices, this means the market might ask you for extra margin money which can lead to lower returns
In case of a loss from derivative positions, your underlying mutual funds may be liquidated or additional capital may be required.
In a bear market, your mutual funds may drop in value and this will lead to decrease in your returns
*All investing involves risk, including the possible loss of money you invest, and past performance does not guarantee future performance.