Faq

Frequently Asked Questions

Q1. What is the main role of a Sub Broker?

The main role of a Sub broker is to recruit customers under margin securities & regulate their business, based on which brokerage will be generated.

Q2. Who is Sub Broker?

A sub-broker (Margin Securities) is a person or company that is registered with SEBI as such and is affiliated to a member of a recognized stock exchange like BSE, NSE.

Sub broking registration number in MCX, Cash, and Future as mentioned below

1. MCX_FNO: MCX/AP/137321 (14/09/2020)
2. NSE-CASH: AP0397273572 (30/09/2020)
3. NSE_FNO: AP0397273572 (30/09/2020)

Q3. Eligibility to become a Sub-Broker?

A sub-broker (Margin Securities) is a person or company that is registered with SEBI as such and is affiliated to a member of a recognized stock exchange like BSE,NSE.

 

Sub broking registration number in MCX, Cash, and Future as mentioned below

1. MCX_FNO: MCX/AP/137321 (14/09/2020)
2. NSE-CASH: AP0397273572 (30/09/2020)
3. NSE_FNO: AP0397273572 (30/09/2020)

Q4. What kind of marketing support will a Sub Broker get from any Broking Firm?

A Sub Broker (Margin securities) would receive the following marketing support from any other Broking firm.

 

Marketing Collaterals

Seminars and Events

Market Research Report

Newsletters

 

Q5. Will Any Broking provide any training to the Sub Broker?

Yes, any broking firm will provide training to the Sub Broker (Margin Securities) regarding all its software & applications to ensure the smooth functioning of the business.

 

Q6. How frequently do you change your portfolio?

Portfolio changes are primarily done when Margin Securities see that the earning/business growth has lost the momentum. So, as soon as, we feel that the fundamentals of any stock from our recommended portfolio have deteriorated, Margin Securities ask you to exit from that stock and then we replace the exited stock with a better opportunity, meeting our 4X-5X criteria.

Q7. Will every stock in your Suggestion list/portfolio grow up to 2-3-4-5 times over the next 2-3-4-

Ideally, we would love to see every stock grow up to 2-3-4-5 times over the next 2-3-4-5 years. However, due to uncertainty in the equity markets, we can be honest in admitting that this is unlikely. However, the composition of the picks is such that, overall the portfolio is expected to grow up to 4-5 times over a 4-5 year holding period.

 

Q8. Do you have unknown names in your portfolio? Why I should pay you for large-cap/blue-chip compan

Our Wealth Creation strategy is Market-Cap and Sector Agnostic also provide strategy and call in derivatives. The portfolio is carefully constructed after screening through a vast investment universe of over 2800 listed stocks in both BSE and NSE; which would typically cover all known and unknown companies. Margin Securities stock selection criteria for Wealth Creation heavily focuses on businesses that exhibit the following criteria. 

  1. Businesses that are in sectors that can grow higher than India’s Real GDP growth rate with fair degree of consolidation. E.g. If we believe India’s real GDP will grow at 6-7% p.a. then we will like to focus on sectors that have the potential of growing at 10-18% p.a.
  2. Businesses that do not face risk of losing business share to substitute or alternate products. Businesses that have minimal regulatory policy-related risks.
  3. Businesses that have strong and sustainable competitive strengths derived out of Customer Relationships/ Market Leadership / Cost Leadership / JV Partnerships / First Mover advantage / Brand Pull etc.
  4. Businesses that do not require recurring and large capital requirements i.e. both fixed capital and working capital to fund growth.
  5. Businesses that are run by the management of exceptional caliber with the ability to successfully scale up.
  6. Businesses that generate free cash flows with supreme focus on balance sheet management.

 

The result from the above screener is further shortlisted based on liquidity, risk-return potential and, beta/volatility. Margin Security firmly believes that a 15-35% CaGR on a growing, large, market-leading company with a robust healthy and financial balance sheet is far superior compared to say a 40-50% return on a relatively unknown company which will have many moving parts adding to the uncertainty in the expected returns. Having said that we are always on the lookout for investing in sound businesses run by high-quality management which are available at compelling valuations.

 

Q9. Why should I/we subscribe to your service?

Our singular focus right from inception has been “Wealth Creation” through long term equity investments, and also provides short term profit book strategies.

The platform executes over 400 algorithms to analyze Risk Tolerance, Diversification of the Portfolio, Selection of the Stocks, as well as Portfolio Allocation of each Stock and then create a Personalized Portfolio of 10-30 Fundamentally and technically Sound Stocks for clients.

The model also keeps a 24×7 track of the investor’s/clients portfolio companies throughout the year and provides rebalancing as required.

 

Q10. How old is your company in this business?

As part of Margin Securities, we have had the advantage of being full time into the world of investments, with a primary focus on equity markets in India since 2016. Our initial focus was only HNI clients; after that, we realized that our “Wealth Creation” strategy can be equally effective for retail investors as well. This is when we opened MArgin Securities (www.marginsecurities.com) platform about 3 years ago for retail investors.

 

Q11. How many clients do you have?

Margin securities have close to 20K+ registered users and 1000+ Happy Customers.

 

Q12. What is the minimum amount that I/we can start investing with based on your recommended stock p

If client are planning for fixed investment, then you may start as small as INR. 1 – 3 lac capital for investment. We also recommend intra-day and derivative strategies. We recommend our Online Personalized Portfolio service if your investible surplus is up to 10 lakhs.

Q13. Is it the right time to enter the market?

Margin Securities believe that the Time you stay invested for works in favor of wealth creation rather than Timing the markets. To avoid timing the market, we recommend buying stocks in SIP manner in our recommended portfolio. Also, Margin Securities believe that if the company fundamentals are moving in the right direction, the stock price has a stronger probability of moving higher no matter when you enter the market.

 

Q14. Why I should buy Rs 300 or Rs 4000 stock and not the stocks which are trading at much lower lev

“Don’t judge a stock by its share price“. Investors often make the mistake of looking only at the stock price, because it is often the most visibly quoted number in the financial press. However, the actual price of a stock means very little unless many other factors are considered. It is only the certainty and quality of earnings growth profile that will determine the upside potential of a stock, irrespective of the levels at which it is currently trading. A Rs 3200 scrip may swell and have the potential of being an Rs. 3000 scrip whereas a Rs. 40 scrip may well slide to trade to 5 Rupees. To conclude – Irrespective of the current market price, the fair value of a stock is a function of its earnings growth potential and valuation multiple; thereby determining the corresponding upside/downside. Eg.- Over the last 5 yrs – ABC from Rs. 250/- is down and now trading at Rs. 100/- whereas XYZ from Rs. 800/- has catapulted to over Rs. 11000/- over the same period. Over the last 5 yrs – LMN from Rs. 60/- is down to Rs. 15/- whereas PQR from Rs. 1200/- has catapulted to over Rs. 9000/- over the same period. Hence, the stock price per say should have no bearing in guiding your stock-picking skills. The ability to understand business and their potential and what would be a fair valuation multiple, amongst many other qualitative factors would all imply the upside potential.

Q15. Does your 4X-5X strategy assure yearly gains as well?

Yes, certainly. Once the portfolio is created, Margin securities track portfolio growth every quarter, and portfolio rebalancing is done if required to make sure that Yearly Growth is captured along with the long term growth in the business.