INSUBCONTINENT EXCLUSIVE:
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.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
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).
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.
