How It Works

At Tauro Wealth, we have not reinvented the wheel. What we have tried to do is to empower the retail investor by demystifying the process of investing. Read along if you want to know how all the pieces fall together behind-the-scenes!

What is the status quo?

There are two primary investment methodologies used in the world today – active and passive investing. Proponents of the former believe that actively managed investments made by “expert managers” can provide higher returns compared to broader markets. Majority of the existing mutual funds, portfolio managers and investment companies fall under this category.

The latter style of investing is used by people who have concluded, based on historical trends and long-term global performance data, that actively managed investments do not provide any outperformance over the more transparent and cost-efficient method of passive investing.

American economist and Nobel laureate in Economics, Eugene Fama concluded in a research paper titled "Luck versus Skill in the Cross-Section of Mutual Fund Returns" that, after accounting for management fees, the performance of active managers is no different from what would be achieved by picking stocks through a coin toss. In other words,  there is no evidence of fund managers with skill sufficient to cover their additional costs.

Find interesting articles about the debate on active vs. passive investing in our Knowledge Base section.

Where does Tauro Wealth stand?

We believe that things are never black or white. There are many different shades of grey governing the complexities of the real world. Although passive investing is better under most market conditions, active investing has proven to add value when individual stocks and/or sectors diverge from their indexes due to trend shifts or certain underlying fundamental changes. Recent studies on portfolio allocation theory have also suggested that by tilting portfolios toward specific traits such as value, momentum, quality/profitability, small cap and low volatility, we have a good chance of outperforming a purely passive index strategy.

To achieve a perfect balance between these two complementary ideologies, we have developed an investment platform using cutting edge concepts of portfolio allocation theory that builds customized portfolios ideal for long-term investing.

According to a study conducted by Wharton business economics faculty in the US, active mutual fund managers' returns trailed passive funds consistently over a recent 10-year period. On an after-tax basis, managers of equity funds for large- and mid-sized companies produced lower returns than passive funds 97% of the time, while managers of small-cap stocks trailed 77% of the time.

What is a Primer?

Webster's dictionary defines the word Primer as "a small introductory book on a subject", or "a short informative piece of writing". At Tauro Wealth, we use the word Primer to classify an idea or an investment strategy. Be it an index tracker which follows the MIDCAP Index, a theme such as Rise of Rural India, or a trading strategy that emulates the investing profile of Warren Buffett, Primers are the foundation which translate those ideas and strategies into investable stock portfolios.

How can you use a Primer?

A Primer is nothing but an investment product. We strongly believe that investors should be able to understand the reason behind making an investment. This helps them make smarter decisions with more conviction and confidence. If you like the idea that a particular Primer is based on, you can invest in it by buying the stock portfolio. It's as simple as that. Our advanced algorithms will keep track of your investments and automatically recommend periodic changes to ensure the best returns.

Just like a mutual fund consists of a bunch stocks managed by a fund manager, our Primers are also portfolios of stocks managed by our advanced algorithms.

Why should you invest in Primers instead of mutual funds?

There are a number of advantages of investing in our Primers versus mutual funds. One of the most important factors is that, unlike mutual funds where you can only make decisions based on past performance, you can choose Primers that are based on forward-looking themes and ideas.

Another very important advantage of our Primers is that they use advanced algorithms to pick stocks, unlike actively managed mutual funds where fund managers invest based on their personal views. These algorithms are able to track many more stocks and provide much more consistent performance versus any human being.

Our Primers are also highly customizable to suit individual investors' needs. An Optimistic investor can pick an aggressive portfolio for higher returns while a Cautious investor can pick a conservative portfolio for more stability. On top of all that, our total cost is much lower than typical mutual funds.

Investing based on past performance is like buying a lottery ticket with the number that won last month, hoping that the same number will win again!

How are Tauro Wealth offerings so cost effective?

Unlike traditional investment companies, we rely heavily on technology to streamline the process of financial research. Using a combination of modern concepts such as passive strategies, thematic investing and portfolio allocation theory, we are able to produce better investment portfolios at much lower costs.

How can you invest through the Tauro Wealth platform?

Investing through the Tauro Wealth platform (both website and Android app) is as easy as it can possibly get. We have tied up with Sharekhan Limited, one of India's largest online brokerage companies, to bring you the most seamless investing experience.

Once you have registered on Tauro Wealth, you will be asked to open a FREE Sharekhan Demat/Trading account. You can do so in three simple steps that will take you just five minutes to complete. After you have submitted the account opening application, we will take care of the rest of the process and link your new account to Tauro Wealth once it is ready. If you are an existing Sharekhan customer, then you can even link the same account to our platform.

And that’s all there is to it. With a linked Sharekhan account, it takes three clicks to invest in a Primer!

What are the different Pricing Plans available on Tauro Wealth?