Does anybody know perceive the logic. For instance. We are able to get solely 80% collateral/margin on BANKBEES whereas the collateral/margin on Nifty Financial institution Index Fund is 92% and collateral/margin on Kotak Financial institution is 90.39%. Are ETF’s thought of to be extra riskier by clearing company?
NaiveDisciple:
Does anybody know perceive the logic. For instance. We are able to get solely 80% collateral/margin on BANKBEES whereas the collateral/margin on Nifty Financial institution Index Fund is 92% and collateral/margin on Kotak Financial institution is 90.39%. Are ETF’s thought of to be extra riskier by clearing company?
i assume it is perhaps resulting from liquidity and monitoring error that etfs are thought of extra dangerous in comparison with index funds and shares. like some etfs may need decrease liquidity particularly if they don’t seem to be closely traded, which equates to extra danger. identical manner monitoring errors may cause etfs to barely deviate from the efficiency of the underlying index, including a component of danger. these is perhaps the explanations. do you see an identical sample is all etfs?
1 Like
yah its very bizarre ,
I strongly imagine its resulting from Mutual fund mafia , apart from that any sane thoughts won’t assume ETFs are extra riskier than particular person shares .
Sadly retail voices are so low , so nobody cares .
2 Likes
@TitanTrader Similar sample for all ETF’s. They’re pretty liquid, even in any other case ought to liquidity matter a lot because it backed by Unit of shares.
@siva0 That’s a potential rationalization.