I understand, that Zerodha is mostly focused on retail traders and hence provides the technology suite for the same. I saw @nithin post about tracking active customers by IP address, they provided some great insightful metrics.
Wondering aloud on the following questions if anyone can answer it would be appreciated:
Can you share sanitized metrics on avg. account size vs. top 10% account size. (overall equity holdings)
Any metrics on how many Zerodha customers are using FNO for hedging vs. trading etc.
Anyone with experience from family wealth offices, what broker/systems do they use?
Most PMS’s that I have interacted with are working with full-service brokers, and not discount brokers adding a layer of cost. Does Zerodha have any PMS providers tied up for accounts with them?
If not, is it because there are regulatory barriers or technology barriers or a feature you would introduce in the future.
I am sure no one person can answer all these questions, so please feel free to pitch in everyone. Just thought it would be interesting to learn these things.
I had a question. Was Google Analytics recently included in Kite? I asked this because until recently I did hear about Kite not even having any analytics.
Thanks for clarifying this. I had a followup question. As that information about users (shared in the tweet) doesn’t have any analytics data from Kite (or Console), wouldn’t the estimate (about more usage in Tier 1 cities) be skewed given that analytics data was mainly for Coin, Varsity & Z-connect only? Is there a possibility that analytics data of Kite’s (& Console’s) geographical usage would be made public in a similar manner?
This is all speculation but I guesstimated the average account size from various public data points. In late January 2020, in an interview, it was mentioned that total securities (equity & mutual funds) held in the client’s Demat account managed by Zerodha was around 18,000 crores (At 9:55). Around late Feburary 2020, there was an article which mentioned that Coin (aka the Zerodha’s Mutual Fund platform) had an AUM of 5500 crores. Around early March 2020, Zerodha crossed 2 million users (archived version of Zerodha’s homepage from 8th March 2020, when the first time the figure of 2 million users appeared in an archived page). For simplifying calculations, if we directly divide 18,000 crores by 2 million, then the average account size comes to around 90,000 for the period of Feb-March 2020. If you only want equity holding average account size for all users, then that would be around 60,000 (after subtracting 5,500 crores from 18,000 crore number. I rounded it off to 6,000 crores to make the calculation easier)
Given that now Zerodha has already crossed the milestone of 3 million users (around July 2020) & the statistic about total securities held with Zerodha isn’t readily available (couldn’t find any estimate after that January 2020 figure), giving estimates about average account size currently is difficult. But in an early June 2020 interview, it was mentioned that the average trade size had reduced 20-25% from 20,000 to 15,000 due to new investors purchasing securities of lesser value (At 0:41) & the average age of investors had also reduced from 32 to 29 (At 5:12) and these new investors were investing very cautiously in the market with small amounts. Given these circumstances, I think the average account size might have reduced below the Feb-March 2020 estimate.
It is much harder to guesstimate the top 10% (around 300,000 users) average account size. But as PMS use Zerodha (those mentioned above (aka Capitalmind & Samvitti) manage over 500+ crores of assets for around 450 people as per latest SEBI Reports) & as mentioned in one of the interviews about how several individual customers now have 50-100 crores worth of securities with Zerodha (At 29:30), I think that average account size (for top 0.01% users if not top 10% users) would be manifold higher than the estimated average account size for all users above