What are the Color-coded tags or buttons that accompany
Every fund is assessed on the following:
Consistent Outperformers : Track record of having generated returns above a
benchmark on a
3-year rolling basis. Consistent performers are Green, followed by Orange. Red have
inconsistent track record on outperforming the index.
The average 3-year rolling returns number appears in the first button.
Quality of Portfolio is assessed based on the quality of each stock held.
quality stocks get a Green second button, followed by Orange and Red (large amount
Upside Potential: Every fund is assessed on what returns it could deliver in the
years based on it.
How do you select the fund for SIP?
Select the fund that is Green on Performance which shows
consistently outperformed the index. Select one with a
high average 3-year rolling returns - the number in the first button. And select one with a
rating on Quality-the
How do you find the best funds within a
Use the Funds Screener and select the category.
It shows the
funds with Green on Performance and Quality right on the
top. The ones with the higher average 3-year rolling returns are ranked the highest. Funds
than 5 years
returns history are colored Grey on Performance. Since the track record is not for an
long period they
feature lower in the list.
How do you build a portfolio with funds?
Build a well-diversified portfolio with funds that
of a stable growth through market and economic cycles and
funds that enhance your portfolio returns over the long run.
Core Funds: Choose from Large cap, Large and Mid cap and Flexicap
Choose from Mid and Small cap funds.
Select a Sector or Thematic Fund that is likely to outperform in the long term.
How do you analyze your current fund portfolio?
Use the Fund Portfolio Analyzer, Sher-ya-Billi to check
portfolio will deliver healthy returns or disappoint
you. Go to Fund
Analyzer. You can also upload details of your funds in the Portfolio Manager and see
report on this page.
What must you be careful about when add a new fund to
When adding a new fund check how different is the fund
to your portfolio by using the link in the Right
allocation box on the Fund Decision Maker.
What are the main problems in a Fund Portfolio?
Most investors have more, many more funds that they
diversified. This tends to reduce returns. Many
investors have more of the same i.e. they have funds that have very similar portfolios and
fund portfolio is
not well-diversified. Either there are too many large cap dominated funds or far too many
small cap funds. What
you require is a good, balanced mix. Finally investors don't know when to exit a fund and
carrying it even though
the future upside potential is very low.
Create stable, long-term investment portfolio with strong, consistent stocks.
Warning: Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Disclaimer: Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provides any assurance of returns to investors.
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 10% in Red stocks.
Funds with more than 15% 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.
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