Comment on Broking goes mainstream - Dec 2021

Robin Jacob commented on 05 Jan 2022, 12:56 PM

Great article…
Completely agree on the need to consistently add new clients…as the life span of the traders is short and it will become more difficult for the broking industry during bear phase…
Also agree on the point that the brokers need to move away from promoting high risk products/services to retail clients….and encourage more sustainable long term options like SIP in Direct equity, positional trades in quality stocks etc….But may need to incorporate an advisory-Broker model…

Don’t agree with moving clients to bonds…this can be a small portion but equities offer much better opportunities and if done properly offers a much better chance of beating inflation and wealth creation.

The problem as you mentioned is a very short term view …Brokers are looking for short term income by encouraging high risk product like intraday/F&O and client goes away after losing his money in 6 month to 1 year.

The advantage of long term products/services is…the clients would stay very long term 10-20 years+ and would also give a higher wallet share…you won’t have to worry much about the bear phase…

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