Taurus has a very healthy work culture and most of our senior team members have been together for six to eight years, which lends the team considerable strength. We have very strong functional heads across the organisation. We can also claim to be one of the most professionally managed firms with zero interference by the sponsors. Strong processes and risk-management systems are also one of our strengths.
Our only weakness is that we have to remain completely focused on increasing our net worth to ₹50 crore as mandated by the Sebi for all mutual funds and this prevents us from using our profits and the investments of the AMC to increase business through various initiatives we would have liked to undertake. We are, however, inching close to ₹50 crore and hope to expand considerably after that.
Challenges ahead
We believe that global economies will continue to do a tightrope walk over the next couple of years since the excesses of the past cannot be wished away quickly. Strategic direction for the business will remain the biggest challenge. From an investment perspective we need to remain ahead of the curve. We are confident of achieving that though it will be a challenge.
Competition
In every business that you look at, competition drives innovation and efficiencies. Hence, more the AMCs in the business the better it is for the investor since she will benefit from the competition. More AMCs will help in augmenting the reach. Concentration of a lot of money/business in a few hands has never been good for any customer/investor whatever be the business under discussion.
Retail reach
We remain focused on cities as of now. Taurus Mutual Fund has never charged the extra 30 bps allowed in the expense ratio by the Sebi for doing business in the towns beyond the top 15 cities. We will grow our retail reach stage-wise with targets for every quarterly period for our retail sales team in terms of hiring more personnel for cities first and then progressing to opening more branches and hiring more personnel.
This article was originally published on December 10, 2015.
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