The Power of 4: Why this ensures your SIP succeeds?
Power 1: Diversify across Process - Value, Momentum, Quality & Size ensures the benefits of right diversification.
One of the biggest advantages of investing in mutual funds is diversification. Diversification reduces risk. Investing in a fund enables you to invest in multiple stocks - this is one level of diversification. However this is not adequate. Outperformance of a fund is due to a Process-method of selection of stocks with similar characteristics. A fund manager tends to have a natural inclination/expertise for a particular Process. Every Process works well in a certain market situation but not in others.
When you do a monthly SIP over a long period of time you need to diversify across these Processes. This ensures you have the right diversification in your portfolio-so at least one fund is working well helping you to stay invested which is critical for success in investing. Over longer term, 10-15 years, all of the above processes beat the market. Hence, it is prudent to invest in all the key processes and hold them for over 10-15 years without worrying about a certain process going out of fashion for short term. So with SmartSIP you get the Power of Diversification across Process.
Power 2: 'Andar-se-Strong' Funds ensures every fund has a Good Portfolio + Consistent Performance to ride through tough times.
Best/Highest past returns as a selection criterion can be very risky and misleading. We stress-test funds on: 1. Portfolio Quality and 2. Consistent Performance (Rolling returns). Funds that pass our stress test have the necessary strength i.e. they are ‘andar se strong’ to ride through the tough times and also recover fast. This method ensures funds with risky stocks in their portfolio and inconsistent returns performance are never recommended. They are also likely to perform better than others when the markets favour their Process. So with SmartSIP you get the Power of 'andar-se-strong' Funds.
Power 3: Low Cost - Direct Plans Only + Small Fee - ensures better returns for you.
Regular Plans are very expensive on the investor pocket. But few realise it until the math is explained to them. If you invested in 10,000 per month for 20 years in Regular Plans you will earn Rs 99.9 lacs(returns assumed 12%) versus Rs 1.15 crores in Direct Plan (returns assumed 13%) i.e an additional Rs 14.6 lacs. Even after reducing the effect of fees you would pay for getting the investment advice the difference will be more than Rs 10 lacs. The difference is even higher for higher SIP amounts. A low cost ensures higher returns for you. With SmartSIP you get the Power of Low Cost.
Power 4: Zero-conflict Advice – No commissions etc from AMC assures you that we work for you only.
Things are always changing and hence the fill-it-and-forget-it passive way of SIP investing does not work. Nor does reacting to every change. So you need advice you can trust-advice that is from a zero-conflict-of-interest advisor. MoneyWorks4me has been fiduciary (no conflict of interest) research and advice provider for 10 years now. So when we ask you to make changes (stop, switch and sell) in your SIP portfolio you can rest assured it is in your interest, 100%. With SmartSIP you get the Power of Zero-conflict Advice.
Create stable, long-term investment portfolio with strong, consistent stocks.
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.
Looking to make the most of market corrections and volatility?
Did you know that market corrections can actually present great opportunities to buy high-quality stocks at discounted prices? By taking advantage of these times of volatility, you can position your portfolio for long-term growth.
At MoneyWorks4me Portfolio Advisory, we specialize in helping investors navigate market fluctuations and build a strong, diversified portfolio. With our collaborative approach, you can maintain control over your investments while benefiting from our expertise and guidance.
If you're interested in learning more and with a minimum portfolio size of 25 L+, we can help you manage your portfolio, no matter the size. let's connect and discuss how we can work together. And as a bonus, we're offering a FREE Portfolio Review using our "Portfolio Manager" tool during our conversation.
So why wait?
Let's get started today and take your portfolio to the next level!
Best Buy Stocks
Do you want to Invest in Undervalued Handpicked stocks and earn high Returns?
Why Buy Quality Stocks
Winning and long lasting portfolio is made of Quality Stocks, but how simple is that?
Important Questions while Buying Stocks
As an Investor most important decision making questions are?
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
You can make an informed decision based on:
Q : Quality :- Q Very Good
Q Somewhat Good
Q Not Good
V : Valuation:- 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
Make an informed decision for Funds
You can make an informed decision based on:
P : Performance (%)* 14 Very Good
14 Somewhat Good
12 Not Good
Less than 5 year data
Q : Quality of Holding Q Very Good
Q Somewhat Good
Q Not Good
*Color code for outperformance consistency
*Number is average 3 year rolling returns
Want to invest successfully in stocks?
How the heck do you select a solution that ensures it?
Does it get you focused on meeting your financial goals?
Does it get you focused on meeting your financial goals?
Investing is to means to funding your goals. Your solution must help you get clarity of your goals and how you should invest to reach them. Does your solution include Financial Planning?