How It Works

We believe that the only way to truly empower the investor is by demystifying the process of investing. Read how all the pieces fall together behind-the-scenes at Tauro Wealth!

What is the status quo?

Investment products can be broadly classified into two categories – active and passive. Supporters of the former believe that actively-managed investments made by “expert managers” can provide higher returns over long term. Most of the existing mutual funds, portfolio managers and investment companies fall under this category.

Passive investing, on the other hand, relies on a number of studies conducted on historical trends and long-term performance data across different countries that have proven without a doubt that active management does not provide any outperformance in the long term.

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.

Where does Tauro Wealth stand?

We believe that things are never black or white. 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 have also suggested that by tilting portfolios toward specific traits such as value, momentum, quality/profitability, small cap and low volatility, there is a good chance of outperforming a purely passive index strategy.

To achieve a perfect balance between these two complementary ideologies, we have developed a unique product that uses cutting-edge concepts of portfolio allocation theory to build thematic and rule-based stock portfolios that provide exceptional and consistent returns in the long term.

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?

Oxford Dictionary defines Primer as “an elementary textbook that serves as an introduction to a subject...” or “a short informative piece of writing”. At Tauro Wealth, we use the word Primer to identify an investment idea or strategy. Be it a tracker which follows a particular Index, a theme such as Rise of Rural India, or a fundamental strategy that emulates the investing thesis 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 a portfolio of ten to fifteen different stocks based on an underlying idea. If you like the idea of a particular Primer, you can invest in it by buying the recommended stock portfolio. It's as simple as that. Our advanced algorithms 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. The best part is that you can buy, sell and rebalance these portfolios with a single click.

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 themes and ideas that are going to work in the future.

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 tailored 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, the cost of investing in these portfolios is much lower than 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?