Sharekhan Franchise is one of the largest providers of Stock Broking Franchise in India. There are around more than 3000 Sharekhan Sub Broker in India. Before anyone opts for Sharekhan Franchise, it is essential for them to carry out an in-depth and detailed review.
The detailed Sharekhan Franchise Review will talk in details about Sharekhan Sub Broker offers Sharekhan Authorized Person Program, Sharekhan Partner Review, Sharekhan Franchise Commission Sharing, and Cost of the Franchise. One also needs to understand various other features that are important under the Sharekhan Authorized Person Program.
Sharekhan Franchise Review & Ratings
Sharekhan is one of the most reputed stock brokers in the country that was established around 16 years ago. Since then, the stock broking firm has earned credibility and has become one of the favourite choices for the franchise and sub-broker programs.
Sharekhan is fully taken up by BNP Paribas. It is a full-service broker that offers its brokerage services both physically and online. The company offers online brokerage services through its website and mobile trading application. The services are offered to multiple clients, including investors, traders, corporates, NRI’s and others.
Sharekhan Franchise was introduced by their founder Jaideep Arora in 2000, and since then the company has been promoting its sub-broker business. The company currently has over 2700+ sub-brokers that are present in more than 580 cities.
Sharekhan Franchise and sub-broker model is a platform to partner with Sharekhan where one can run his own business with them and earn profits. Sharekhan offers a variety of partnership models that can be tailor-made to meet the needs of each and every client.
The partnership models by Sharekhan are designed to ensure that the collaborators or sub-brokers get the maximum benefit. It also helps them to set up their own trading business under one of the biggest industry players.
| Sharekhan Franchise Review | Details |
|---|---|
| Criteria | Ratings |
| Experience | 7/10 |
| Offline Presence | 7.5/10 |
| Market Reputation | 8.0/10 |
| Market Share | 8.5/10 |
| Brand Equity | 8.5/10 |
| Revenue Sharing | 7.5/10 |
| Products and Services | 8/10 |
| Holistic Support | 7.8/10 |
| Overall Rating | 7.8/10 |
Sharekhan Partnership Association Types
Sharekhan Partnership Association Program is broadly classified into two types, including Sharekhan Sub-brokers or Sharekhan Power brokers and Independent Financial Advisor (IFA).
Sharekhan Power Brokers or Sharekhan Sub Broker or Sharekhan Authorized Person Review
People opting for this model of Sharekhan Franchise need to have a decent setup. The Sharekhan Power Broker or sub broker or Authorized Person can acquire and serve the clients who wish to trade online by themselves. There are various customized and flexible service options offered by Sharekhan to its clients who opt to become Sharekhan’s Power Broker, or Sharekhan Sub Broker, or Sharekhan Authorized Person.
Sharekhan provides a dedicated relationship manager under this model for Equity sales, Risk Monitoring, and Operation related issues. Under this model, Sharekhan takes care of the technology, service and marketing support necessary for the clients. Sharekhan also ensures that the Power Brokers/Sub Brokers/ Authorized Person setups are well educated, well set, and well trained with all the various procedures, portals, and offerings of Sharekhan.
Marketing support provided by Sharekhan is one of the most crucial functions that is required for increasing the business and creating a favourable situation for both the broker and the franchiser.
Benefits of Becoming a Sharekhan Authorized Person or Sub Broker
Some of the benefits offered by this model include the following:
- It offers the bandwidth to serve a more extensive client base
- All the services, marketing, and technological support is taken care of by the company itself
- High Net Worth clients are offered customized services
- A dedicated relationship manager is appointed to better serve the clients
- A wide range of products and services is offered along with customized, tailor-made solutions
Sharekhan Independent Financial Advisor (IFA)
This franchise model offered by Sharekhan offers only a few product range to its clients. The products offered under this model include mutual funds and allied products. This model requires a client to perform advisory services to guide the clients with their investment decisions.
Hence this business model is suitable for the businessman who wishes to limit their service to providing mutual funds only.
Benefits of Sharekhan Independent Financial Advisor (IFA)
Some of the benefits offered by this model include the following:
- It is much more product-specific
- A dedicated relationship manager is assigned to assist in advisory and operational matters
- High net worth individuals are offered modified solutions under this model
Sharekhan Franchise Commission Sharing/Revenue Sharing
Sharekhan follows a dynamic revenue sharing model to remunerate its sub-brokers, authorized persons and IFAs. The commission offered is different based on the products and services being offered under each model.
The commission allotted is also dependent on other factors like revenue generated, security deposit, the investment made, and other relevant parameters.
Sharekhan Power Broker Commission: The revenue sharing ratio for this model is the highest as the sub-broker/power broker performs some of the most crucial functions and at the same time takes the highest risk. The revenue shared under this model might exceed up to 70%.
Sharekhan IFA Commission: The revenue sharing ratio under this model is somewhere between 30% to 40% for Sharekhan and 60% to 70% for the sub-broker. The profit sharing ratio depends on the products sold by the IFA and the margin on those products.
| Type | Sharekhan Commission | Sub Broker Commission |
|---|---|---|
| Sharekhan Authorized Person/Sub Broker/Power Broker | 30% | 70% |
| Sharekhan IFA | 30% to 40% | 70% to 60% |
Sharekhan Franchise Cost or Security Deposit
Just like any other franchise business, an initial amount of investment is required to be made to become a Sharekhan sub-broker. The initial investment has two variants- first is the security deposit to be made by the sub-broker, which is generally refundable. Second is the initial investment required to be made by Sharekhan
Sharekhan Franchise Infrastructure Cost
The sub-broker is required to make an investment in the infrastructure. Sharekhan Power Brokers and IFAs need to invest in infrastructure to start with the franchisee. The franchisee will be required to handle both the existing and the new clients. Hence, an initial investment in infrastructure is essential.
The amount of investment depends on several factors like the city of the sub-broker, the revenue projections shared, the existing client base, and other such relevant things (if any)
Investment by Sharekhan
The security deposit made by Sharekhan is approximately Rs.50,000* for all the business models. Though the infrastructure investments are specific, it can, however, range somewhere between Rs.50,000 to Rs. 1 lac.
| Sharekhan Franchise Security | Deposit Amount |
|---|---|
| Sharekhan Authorized Person / PowerBroker | Rs. 50,000 * |
| Sharekhan IFA | Rs. 50,000 * |
Going with Sharekhan Franchise Model is a good option. Those interested can choose from any of the two different franchise models offered by Sharekhan as per their preferences. The services, marketing, and necessary training required to carry out the business are taken care of by Sharekhan itself. The sub-brokers also get a dedicated relationship manager for increased support to carry out business effectively.