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Upstox Ties up With Tavaga to Offer Investment Advisory Services

Business Finance

Press Trust of India  |  MUMBAI 

/ -- Upstox (also known as RKSV Securities Pvt. Ltd.), the new-age online discount-broking firm, backed by Mr. Ratan Tata, Kalaari Capital, and GVK Davix, has tied up with Tavaga Advisory Services, a leading state-of-the-art advisory firm focused on providing investment advisory services via low-cost Exchange Traded Funds (ETFs).

Penetration of financial products is very low in India. While there are approximately 75 crore bank accounts in this country, the number of demat accounts are limited to less than three crores. Retail investors, especially in rural India, don't have access to the same advice, execution technology and processes in investment products as available to professional funds. As a result, a large chunk of population is left out of financial inclusion, resulting in more socio-economic problems.

Through the Upstox-Tavaga partnership, both companies intend to bring more consumers into the investing universe who had, till now, explored only the traditional methods of investing.

Upstox has extended its reach to tech-savvy youngsters and tier-2 & tier-3 cities, where facilities are limited. Now, with Tavaga, Upstox aspires to bring more retail participation in the share market and promote cost-effective ETFs. Tavaga aims to empower investors by helping them save more and achieve user-defined goals, through investments in ETFs.

Talking about the objective behind this tie-up, Ravi Kumar, co-founder and CEO, Upstox says, "As India becomes a $5 trillion economy in the next five years, stock market participation can only increase from the current levels. We have already seen a huge interest from rural India to participate in the India growth story. However, costs and complexities while investing have been big deterrents. Upstox understands this and has actively been working on solutions that will not just address this issue but also encourage active participation in the stock market. Our larger objective is financial inclusion, and we are happy to discover that Tavaga is working on the same objectives."

Giving insights on the advisory objective, Nitin Mathur, co-founder and CEO, Tavaga, says, "While retail investors at the top end of the wealth pyramid have access to quality advice, incentive of wealth advisers to serve the larger pool of population is absent. Tavaga's vision is to democratise investment advisory and cater to investors' goals and needs through more transparent and efficient investing. Use of ETFs is a prudent financial advice to customers, and Tavaga aspires to leverage these financial instruments and increase financial inclusion. Upstox has been a pioneer in bringing best-in-class execution capabilities to retail investors and we are glad to be working with them towards a common goal of financial inclusion."

About Upstox:

Upstox (registered as RKSV Securities India Pvt. Ltd.) entered the retail brokerage market in 2012. With backing from Mr. Ratan Tata and venture capitalists such as Kalaari Capital and GVK Davix, Upstox has been revolutionising the concept of discount broking in India and pushing the limits of digital financial investing with innovative technology, intuitive user experience and unbeatable pricing.

The uniquely global-Indian model of Upstox is strongly reflective of the Indo-American antecedents of its co-founders, who implement their knowledge and experience of working in both, the Indian & US financial markets and the Silicon Valley in making Upstox a strong and pioneering force in the industry. Upstox ensures that its clients reap the benefits of a high-tech online trading platform and best-in-class services every step of the way from the time they open an account to executing trades and beyond. Upstox is driven by its guiding principle of making trading in stock markets simple and affordable for all. It was among the first in its category to introduce commission-free trading. It has also ensured full transparency in pricing by offering 'zero' brokerage on equity delivery trades and a flat rate of Rs. 20 per intraday order for all other segments.

Upstox today ranks among India's high-growth online brokerage firms and is a leading volume contributor to the country's top equity and commodity exchanges.

About Tavaga:

Tavaga (registered as Tavaga Advisory Services Private Limited) is an investment advisory firm that aims to demystify finance for the retail investor. The founding team boasts of an extensive and rich experience in finance, technology and marketing.

Off-the-rack investment options, such as mutual funds, do not meet the individual needs of every investor. Tavaga ensures its algorithm-based advice accounts for the clients' risk profile and goal tenure. Its vision is to cater to investors' goals and needs through more transparent and efficient investing in Exchange Traded Funds (ETFs).

The use of ETFs is a prudent financial advice for the core investment portfolio of a wide range of investors, as is evident from the global ascendancy of ETFs, and skyrocketing AUMs (assets under management) in the ETF industry. A mix of technology in the advisory space ensures that a profitable business model is built, while passing on all the benefits to the end customers.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Wed, May 29 2019. 14:45 IST