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'We are not focusing on direct plans'

Waqar Naqvi, CEO, Taurus Mutual Fund on how distributors play an important role in an investor's journey and more

'We are not focusing on direct plans'

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Taurus Mutual Fund believes that distributors are a very important link in the chain for guiding investors towards suitable investments. On the back of this thought, we are not focusing on direct plans. As for passive investing, it is true that expense ratios in passive funds are lesser than those for actively managed ones, yet with the Indian equity market expected to grow significantly over the next few years from where it stands at present (despite some hiccups as can be expected in equity markets), it is our belief that the actively managed plans are better for investors unless it is a gold ETF which can only be a passive fund since actively managed gold funds are not allowed in India.

Different organisations have different strategies suiting their own strengths and weaknesses. Given Taurus Mutual Fund's strengths and weaknesses, we believe that while we are not ignoring hinterland and remote locations, we should focus on the cities where our own offices are present and on those cities/towns that are close to the cities where we have our own offices.

So, given the stage where we currently stand and even otherwise, Taurus Mutual Fund believes in a sincere effort which sticks to the basics, just as in the past we did not launch any equity scheme purely for the sake of marketing. As a result, we did not have to merge any of our equity schemes since all our equity schemes were true to label and there was no duplication between our schemes.

Risk control in debt funds
Taurus has not been comfortable with the developments in the debt markets. In 2018, we merged all our debt funds into the Liquid Fund, which has been investing only in CBLO (collateralised borrowing and lending obligation). We feel allowing side-pocketing is a good initiative by SEBI and will provide for it since a fund does not lose by amending its SID to incorporate the provisions of sidepocketing.

Key challenge
Growing the business has become increasingly challenging for all fund houses alike. This becomes acute for relatively smaller fund houses. Taurus is striving to get as many distributors as possible on its side to overcome this challenge.