How to invest in mutual funds?
Why should you invest in Equity Mutual Funds?
Asking this question, when investment in Equity Mutual Funds in 2017 far exceeded what was done during 2000-2016, may seem as irrelevant to many. And, the answer is obvious…‘Kyunki Mutual Fund Sahi Hai.’ And, it’s precisely this reason, mouthing the words from an advertisement campaign run by the industry that should worry us. Especially when the follow up campaign sounds like a qualifier…‘Lekin patience is required.’
This reminded me of the first and last Wealth Manager I met who sold me an ULIP and MFs way back in 2006 or should I say conned me into it. But, then one can’t blame the individual when the entire industry was scamming left, right and center. And, the mistake is all mine because I had entered a market that has a huge sign-board, hidden in plain sight, that says ‘Caveat emptor-Buyers beware’, but I missed it. But never again, not me, not anyone I can reach.
Since starting MoneyWorks4me, 10 years ago, I am a committed investor in Direct Stocks. Before that I made all the mistakes Retail Investors make. The biggest mistake is not understanding the difference between ‘Putting your money into stocks and Mutual Funds’ versus ‘Investing in it.’ When you put in money, you also take it out and one does it with very little commitment. It’s still happening! It appears that every month about 3% of investors exit from a fund. This means in a short time most of the investors in a fund are new. More than 50% seem to hold a fund for...........Read More
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About MoneyWorks4Me
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
Our Vision
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
What Makes MoneyWorks4Me Different
-
Fiduciary-first advisory model.
As SEBI-registered IAs, we are legally and ethically bound to act in the best interests of our clients. We do not sell or distribute any financial products. This ensures our guidance is 100% unbiased and conflict-free. -
Deep fundamental research + robust valuation discipline.
Built on more than 15 years of equity research, our framework combines quality assessment, intrinsic value estimation, and a sensible margin-of-safety approach. -
Process—not predictions.
We don’t rely on guesswork or market timing. Instead, we focus on asset allocation, risk management, and long-term compounding. -
Technology + Human Intelligence.
We believe a combination of both is essential for investing success. We constantly innovate and upgrade in-house tools, financial X-rays, and portfolio analytics so that our team of analysts and advisors are equipped with the best. -
Partner with Clients.
We follow a DIWM (Do-It-With-Me) approach where we partner clients in setting goals, financial planning, educating on our investing process and share decision-enabling resources transparently with our clients who retain control on execution.
Our Approach: Ensuring compounding work its magic on client portfolio.
MoneyWorks4Me ensures this through:
- Investing in stocks, mutual funds, debt, and gold
- Quality-at-Reasonable-Price way of investing in stocks
- Constructing Direct Stock Portfolios with Core, Booster, and Amplifier stocks
- A Mutual Fund Portfolio that delivers consistent out-performance and meaningful diversification (low overlap)
- Periodic review and rebalancing
- Clear Buy-Sell-Hold, and Position-sizing frameworks
MoneyWorks4Me method for rating and ranking mutual funds for SIP
MoneyWorks4Me rating and ranking of funds for SIP is available to subscribers only. Moneyworks4Me is not a rating and ranking agency, however it is required that users have a way of selecting funds and building a Portfolio. The method used by it are described below to enable users to understand the logic behind the rating and ranking Subscriber will find more details on this in the various content made available from time to time. In case you need more please write to besafe@moneyworks4Me.com
MoneyWorks4Me rates and ranks mutual funds based on the following data-driven system:
- Performance Consistency: This is measure based on whether the fund has beaten the benchmark index consistently. For this we compare the 3-year rolling returns of the fund with the benchmark for a minimum of 5 years and preferable 10 years. The period of rolling is one month and holding period is 3 years. Fund are color-coded Green on Performance when the fund beats the benchmark more than 90% of the time. It is Orange if it beats 80% to 90% of the time and Red if less than 80%. Funds with less than 5 year data are color-coded Grey.
- Quality of Portfolio Holding: Moneyworks4Me has color-coded stocks as Green, Orange and Red based on whether the company's performance has generated a ROCE above a threshold level (cost of capital) over 10 years (minimum 6 years) and generated positive Free Cash Flow. For Banks it checks whether ROE is greater than 15% and sales has grown over previous year. Stocks that perform consistently on these combined metrics are color-coded Green (min score 14 out of 20), Orange (between 8 and 14) and Red (less than 8 out of 20). Fund are color-coded Green provided the portfolio has 70% holding in Green stocks but not more than 20% in Red stocks. Funds with more than 20% Red stocks in the portfolio are color-coded Red. The rest are Orange funds
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
Make an informed decision for Stocks
Invest using an intelligent system with powerful data-driven tools that help you identify opportunities and make informed buy-hold-sell decisions
Q Very Good
Q Somewhat Good
Q Not Good
V+UnderValued (UV)
V Somewhat UV
V Fair Value
V Somewhat OV
V+ OverValued (OV)
Buy quality Stocks when they are available at reasonable prices and supported by an upward price trend and Sell when they are Overvalued using the Decizen Rating System. Covers 3500+ stocks
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