The Indian financial market is where people spend their money in various financial instruments to increase their wealth and receive higher returns. However, the first step in beginning the investment journey is to select an excellent asset. The financial market encompasses a wide range of financial products, including shares, mutual funds, commodities, currencies, and derivatives.
Mutual Fund is the first choice for the individual to invest in the market. Mutual Fund Distributors play a vital role in investing and finding the best mutual funds to choose.
An option of business is available for mutual fund distributors for clients who want to invest in the market directly or want to invest for a long time so they need a stock broker who can provide them with a franchisee and now they can open their existing client of mutual fund demat account to invest directly in the market and earn revenue percentage on brokerage generated.
What is a Stock Broking Franchisee?
Stock Broking Franchise:- “A sub-broker, also known as an authorized person (person or entity), acts as a stockbroker’s agent. The stockbroker is registered with a stock exchange. The stockbroker approves and appoints the sub-broker to provide trading services on their behalf. A sub-broker often works on behalf of a broker and helps investors deal with stocks.”
- Established Platform:- Working with a reputable Stock broking Franchise gives you a ready platform, infrastructure, and support. This can be advantageous, particularly if you are new to the sector.
- Access to Research and Tools:- A stock broking franchisee gives access to data, tools, and training that may help you better serve customers and make investment recommendations.
- Client Base:- Brokers may already have a client base, providing you an advantage when it comes to future clients.
- Be your own boss:- One of the major benefits of owning a business is being your boss. Starting a franchise business allows you to be your own boss while yet leveraging the franchise’s knowledge base. Owning a business is demanding work, but being your own boss allows you to choose your own schedule, have control over your career, and maybe work from home. A franchise allows you to be your own boss without taking the risk of starting your own business.
If You Are A Mutual Fund Distributors Key Advantages of Being a Sub-Broker Franchise
Share of High Sales:- The sub-broker keeps a large part of the client-generated brokerage, while the franchiser receives a small amount.
Investment Sector:- A franchise for a sub-broker can be established with a minimum investment of Rs.25,000, which is 100% refundable. The franchisee is just charged a security deposit to cover all of their expenditures. In certain cases, the franchisee who began the sub-broker business does not even require a minimum deposit.
Marketing and training support:– The franchiser provides the sub-broker with a variety of marketing materials, including posters, flyers, and branch hoardings. They also provide seminars to educate their broker partners on various elements of the company, ensuring that they understand how a sub-broker franchise operates.
Advisory Support Program:– Some franchisers additionally give their sub-brokers assistance, inventory ideas, and suggestions to help them benefit their clients, grow sales, and guarantee the franchise’s operations run smoothly.
Item, Service, and Deals:- The sub-broker may also utilize any new items, services, or bargains presented by the franchiser. This enables the sub-broker to continue to engage their clients in new offerings.
Added Advantage of Authorised Person :-
If somebody open’s account of mutual funds and associated with demat account as well then there is a chance that it will directly purchase mutual funds from brokers demat account & this is a drawback that you can lose a client, so if you have a authorized person or have a franchisee then you can see who have associated directly with mutual funds so you can convince them. Look at a close watch on clients.
Vice versa if someone have demat and interested in the mutual funds so you can convert them as your mutual fund clients as well.
“What Are the Requirements to Become a Sub-Broker?”
You can visit the above link for more explanation on sub-broker
Conclusion:-
If you are a mutual fund distributor, you will have a better opportunity. Start a sub-broker franchisee and make extra money. You can 70 to 75 % of the revenue with the firm and increase your revenue besides mutual fund distribution.
To get best deal in Broking Franchise –
