MoneyWorks4Me method for rating and ranking mutual funds for SIP

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MoneyWorks4Me rating and ranking of funds for SIP is available to subscribers only.
Moneyworks4Me is not a rating andranking 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 thevarious content made available from time to time.
In case you need more please write to besafe@moneyworks4Me.comMoneyWorks4Me 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.
Forthis we compare the 3-year rolling returns of the fund with the benchmark for a minimum of 5 years and preferable 10years.
The period of rolling is one month and holding period is 3 years.
Fund are color-coded Green on Performance whenthe 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 lessthan 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 thecompany's performance has generated a ROCE above a threshold level (cost of capital) over 10 years (minimum 6 years) andgenerated positive Free Cash Flow.
For Banks it checks whether ROE is greater than 15% and sales has grown over previousyear.
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).
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP.
Theranking 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 numberthat 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.