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.
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
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.
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
ReplyDeleteAjay
ReplyDeleteHow 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