"Never before in history has innovation offered promise of so much to so many in so short a time." – Bill Gates
As Vice President of Structured Products in Deutsche Bank India, Harsh Vardhan Singh saw retail investors constantly struggling with the ever-growing knowledge and information gap in the financial world. On the personal front too, his own family and friends were losing large sums of money following the advice of so-called investment experts and stock brokers. He realized that there was a desperate need for a technology-driven investment platform that was simple enough for everyone to understand and yet as powerful as the systems used by top financial institutions.
An IIT Kanpur alumnus, Harsh has always strived for simplicity in complex situations. According to him, “The lack of such a resource is why many people consider investing in stock markets similar to gambling in a casino. And I feel quite strongly that technology can bridge this wide gap between the investors and the stock market.”
Asking The Right Questions
With an aim to improve investor confidence by educating and empowering the retail investor, Harsh co-founded Tauro Wealth along with Anand Vivek Srivastava. Anand, a computer science engineering graduate from IIT Kanpur, has worked extensively on building large, complex and high-performance software systems, most recently at Microsoft. He says his decision to join was straightforward because he had observed this problem first hand. Anand says, “Having faced the challenges of investing in stock markets myself and having watched friends and family members repeat the most basic investing mistakes, the idea of using technology to simplify investing is a winning proposition for everyone.”
To get their idea off the ground, they raised funding through a seed round in September 2015, with investments from Tracxn Labs, along with a few friends and former colleagues.
“Never ask a barber if you need a haircut.” – Warren Buffet
Having worked as an insider in the financial industry, Harsh knew that the welfare of the investor was in direct conflict with that of the advisors, who were only motivated to drive transaction volumes. This also explains why most financial advisors persistently bombard clients with ideas to buy and sell random stocks for short periods of time.
Despite these dismal conditions, one-third of the investors still follow their brokers’ advice or trade based on stock tips heard from friends while another one-third rely on print media and TV for investment guidance, according to a 2013 NCAER* report sponsored by SEBI. (*National Council of Applied Economic Research)
What Tauro Wealth Does Differently
“Do not go where the path may lead; go instead where there is no path and leave a trail.” - Ralph Waldo Emerson
Various global studies have proven that actively managed investments do not provide good returns, as the high fees charged by managers eat away most of the profits. Human psychology and personal biases of the manager can also wreak havoc on investment returns. In the case of passively managed money, or rules-based investments, personal biases are eliminated and consistently high returns can be achieved. Here’s how Tauro Wealth has solved the problems that plague conventional investment avenues.
Thematic investing Present investment ideas in terms of trends and themes people can observe and understand to make smart, informed decisions.
Passive strategies Generate portfolios using proprietary algorithms to minimize manual intervention and remove human errors and personal biases.
Extremely low cost Compared to most conventional mutual funds and money managers which charge more than 3% per annum management and operational fees, Tauro Wealth will provide better quality research at a small fraction, i.e. 1% of the cost.
Full transparency Investors get ample autonomy to decide where and how they want to invest their savings.
And in doing so, Tauro Wealth hopes to empower the retail investor – by offering investment ideas based on extensive analysis, in an uncomplicated way and at remarkably lower costs.