Search interesting materials

Friday, August 27, 2010

Breaking with a dysfunctional business model

I have an article in the Financial Express today titled Breaking with a dysfunctional business model, about the fundamental problems of insurance companies and mutual funds in India.


  1. i dont agree completely again. he yeild of broking industry in India is .05 % which turn out to be 50 cr per day of profit which is smiliar to what they were making pre reforms. additionaly, brokers previously neevr invested in investor services as it is sellers market but not it is buyers market. they need to invest in so many things that operating margin has come down. Altough it is still better than many industries. it will further come down and we will clearly get matured when we identify our broker as full service broker or transaction broker

  2. Ajay

    How did you get to a figure of 200 Crore revenue for the broking industry. this works out to about 0.2% of the total trade.

    As you may know, the max brokerage on cash delivery is about 0.5%, day traders pay a fraction of that. Max brokerage on Futures is about 0.05%. would be interesting to know the source of your figure. thanks


Please note: Comments are moderated. Only civilised conversation is permitted on this blog. Criticism is perfectly okay; uncivilised language is not. We delete any comment which is spam, has personal attacks against anyone, or uses foul language. We delete any comment which does not contribute to the intellectual discussion about the blog article in question.

LaTeX mathematics works. This means that if you want to say $10 you have to say \$10.