Over the years, the stock investment industry has grown a lot with the emergence of new players that strive to offer unparalleled investment products & services to people. Among the top 10 stock brokers in India, Sushil Finance is one that that is primarily known for its diversified offerings. Along with this, the stockbroker offers limited initial costs and a competitive number of benefits.
In this Sushil Finance Franchise review, we will take a detailed look at the performance of the stockbroker in regard to its offerings, brokerage, customer services, technology, platforms, etc. The sole purpose of this stockbroker review is to help you make a sound decision about associating with it.
Sushil Finance Franchise Review
Established in the 1980s, Sushil Finance is considered one of the oldest full-service stock brokers in India. The best thing about the stockbroker is that it offers a wide range of trading & investment services across diverse segments including Equity, Mutual Funds, Commodities, IPO, Insurance, etc.
Considering the latest data by NSE, it has been analyzed that Sushil Finance has an active client base of more than 37,000 which places it among the top 50 stock brokers in India. In regard to the offline presence, the stockbroker has an active presence in 22 states of the country with more than 640 offices across the country through its various channel partners.
Let’s take a detailed look at the stockbroker’s various models, their corresponding eligibility criteria, revenue sharing proportions, related fees, and other factors that must be known to a user before investing.
So, let’s start with partnership models
Partnership Models
In total, there are 4 partnership models that Sushil Finance offers to its potential partners. Each of these models has a specific set of costs, requirements, revenue sharing, functions, and products.
If you’re planning to associated with Sushil Franchise, it is more than necessary to have a detailed understanding of these models to get the desired outcomes.
- Sushil Finance Center Partner
This partnership model is appropriate for new Authorized Person / Channel Partners, Professionals such as Insurance Agents, Mutual Fund Advisors, Primary Market Authorized Person, etc. or people dealing in any other Financial Services Products & serving an existing/new client base of retails/HNIs with own infrastructure. One can easily compare this model with a sub-broker or a franchise business partnership itself with the role termed as a Center Partner.
The job of the center partner primarily would be to gain and service the client base. In addition, he or she may be required to perform trading on their behalf if they opt to use the call and trade feature for share market trading.
It is important to remember that the partner should have a strong inclination towards sales as it helps in acquiring new clients, directing them in a purposeful way that can be beneficial for both parties.
Offered Products
– Equities & Currency Trading
– Mutual Funds & IPO (Wealth Management and Financial Planning)
– Internet Trading & Mobile Trading
– Loan against Shares (LAS)
– SLBM
Eligibility Criteria:
In order to become a partner under this model, you need to fulfill the following conditions:
- Must own or rent a space to operate the business. The broker is flexible to the level that you have the option to run the business even from your home, however, managing the team and the inquiring client base will entirely be your responsibility.
- Exceptional Selling Expertise along with client acquisition methods.
- You are required to pay an upfront initial deposit of ₹1 Lakhwhich is refundable.
- You will be furnished with terminal software and connection so that you can order trades for your clients. There will be an extra charge of ₹250per month if use their software.
- There is a one-time registration charge of ₹2,360per segment. It goes up depending on the number of segments you choose for trading.
- You will need to provide some important documentation to your professional experience along with other business-related documentation as mentioned below:
- PAN Card
- Aadhar Card
- Education Proof (you need to be at-least educated till Intermediate level or 10+2 for this business)
- Residential Address Proof
- Office Address Proof (can be an electricity bill, phone bill, bank statement)
- 4 passport sized photographs
- Reference letter from a Chartered Accountant)
- Sushil Finance Resident Partner
Another popular partnership model by Sushil Finance is Resident Partner under which there is no need to set up an office to perform trading. In this case, you get the option to occupy the office space of Sushil Finance and carry out all our designated tasks from there itself.
The task responsibilities would remain as of center partner – to acquire new clients and service them. A dedicated trading terminal would be provided to perform the tasks diligently.
Products Offered
– Equities & Currency Trading
– Mutual Funds & IPO (Wealth Management and Financial Planning)
– Internet Trading & Mobile Trading
– Loan against Shares (LAS)
– SLBM
Available Segments:
– Equity Cash & F & O
– Currencies F & O
Eligibility Criteria
Most of the requirements are the same as of center partner with the only exemption is of no office requirement. This partnership model is suitable for all types of people like mutual fund advisors, insurance agents, sub-brokers, etc.
- Sushil Finance Managing Partner
This partnership model has almost the same specifications as of center partner model. The only difference is that you would have to guide clients and perform trading at Sushil Finance Office via a dealer.
This can be explained in a way that you will need to manage clients of the stockbroker through their corresponding dealers. Under this model, you will be aligned with different dealers and center partners and your main responsibility will be to ensure that all the relevant parties have an easy time dealing with their respective clients.
You may also be asked to place orders on the behalf of a client through the corresponding dealer.
- Sushil Finance Introducing Partner
This business model has no general limits or reliability where your job is to acquire or serve the client base. In this case, you just need to introduce a possible client to the Sushil Finance team. Further things like client acquisition, serving, advising, etc. will be taken care of by the stockbroker itself.
There is no need to have an office in this model.
The only thing you need to have is an extensive social network through which you can find out possible clients for Sushil Finance. For this, the stockbroker will share a certain percentage of brokerage.
Revenue Sharing
Primarily, it depends on the partnership model you choose to go with.
In general, Sushil Finance operates with a 70:30 model in the NSE, futures segment where 70% of the overall brokerage you produce is yours while the rest 30% goes back to the stockbroker.
Against this, the stockbroker gives you its brand name, frequent training, market research insights, and full-fledged trading platforms.
Except for this, for categories such as currency, commodity, options the revenue sharing is placed at a 50-50 percentage. This suggests that half the brokerage you get from your client base comes back to you as your business revenue.
Business models such as Introducing partners get revenue sharing in the band of 20% to 50%.There is no revenue sharing with the broker in this model. However, you need to churn out a sizable fixed amount to the broker for such a model.
Benefits of associating with Sushil Finance
- Comparatively a long-standing name in the stock market
- Impressive offline network
- Extensive range of investment products for potential clients
- Trading offered on client acquisition, client servicing, etc.
- A dedicated relationship manager is allotted
- All types of support are provided by the broker to its partners
Issues with Sushil Finance
- Scope of improvement in the trading platforms
- Limited brand recall value in certain regions of the country