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FREQUENTLY ASKED QUESTIONS
Q: What services do I get with Mojo Professional subscription?
- Ans: Once you take our subscription you will get unlimited access to all below mentioned Mojo Professional features -
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STOCK SCORE, Buy/Hold/Sell on your portfolio companies
With a success rate of over 80% get Buy/Sell/Hold calls on all 4000 listed stocks with detailed rationale and research reports -
MODEL PORTFOLIOS - Invest in your choice of 3 model portfolios
with an impeccable track record. We will create these portfolios and track it for you. All you have to do is decide the amount you want to invest, choose your risk profile and start. -
MOJO STOCKS, add Top 1% stocks to your portfolio
Our most sought after section, Mojo Stocks has the highest probability of success. If you are looking at the best stocks to buy at any time and market scenario, there is no better way to invest than to just follow Mojo Stocks -
PORTFOLIO SERVICES - Active advisory on your portfolio
Upload your portfolio in seconds from any broker and this unique feature helps you to weed out underperforming companies and invest in better quality companies. We track & advise you on your portfolio, 24/7. -
STOCK OF THE MONTH, the best stock to invest each month.
Every 10th of the month, you will receive a handpicked stock from our CIO-Sunil Damania. -
SCREENERS - Make your own stock selection model
Our 2 powerful screeners will help you select companies based on your favorite parameters. You can make your own formula and create your screener. -
VERDICT, real time research reports on all listed companies.
The detailed research report changes every minute, taking into account of all the things that affect a stock. Research your stock and also get alternatives to better stocks in the same Industry/Market Cap. -
SwitchER, switch to better stocks
If you hold a stock, the most important decisions are twofold- Should you keep holding it? Or Should you Switch to some other better stock? The best option to switch to the strongest stock is covered in the SwitchER report -
Mutual Fund Research-Get the best funds in each category
With MarketsMojos unique ability to research every stock, we have created a new way of analysing a Fund which looks at not just the fund’s performance but also the strength of its portfolio. We look at various performance measures with an emphasis on consistency and not just periodic measures.
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STOCK SCORE, Buy/Hold/Sell on your portfolio companies
Q: Are you SEBI Registered?
Ans: Yes, MarketsMojo is a SEBI Registered Investment Advisor, our SEBI Registration number is SEBI INA000012528
Q: How is a stock analysed on MarketsMojo?
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Ans: MarketsMojo- Company Evaluation
Each company is evaluated across multiple parameters and our final call on the stock is crystalized as the Score and Call on the company.
Mojo Score
Every company is rated on a scale of 0 to 100, with higher the score the better. The Score is accompanied with our call on the stock which has a scale across
- Strong Buy
- Buy
- Hold
- Sell
- Strong Sell
To arrive at the Mojo Call on a stock, we look at 4 key Dot parameters of
- Quality: Long Term Fundamental Strength
- Valuation: Attractiveness of the stock at the current price and multiples
- Financial Trend: Latest results trend
- Technicals: Near term price and volume momentum
Quality: Long Term Fundamental Strength
We believe High Quality companies are the ones which demonstrated strong fundamentals consistently over a long period. Quality has three major groups
- Growth: Long Term growth in sales, operating profit and net profit
- Capital Structure: Suitability of company’s debt measured and debt serviceability. For banks this is measured using capital adequacy ratios
- Management Risk: Company’s ability to deliver return on its capital over a long period of time, coupled with market linked factors to determine whether the profits are real like dividend payouts, tax payout etc. We also give importance to institutional holding and holdings by domestic funds.
Quality Grades- Companies are rated on the below scale
- Excellent
- Good
- Average
- Below Average
Valuation: Attractiveness of the stock at the current price and multiples
We believe a company with stronger fundamentals can justify higher valuation multiples but a company with weak fundamentals cannot even justify lower multiples. In our relative valuation measure we look at the below key parameters
- Fundamental valuation: By looking at the relationship of the fundamental variable and valuation multiple we arrive at the regression equation to calculate where the company at its current fundamentals should trade. We adjust this derived number for the company’s sector and its own growth and debt levels. We then compare where the company is trading vs where it should trade.
- Past Valuation: We measure the difference in the premium / discount which the company is trading at vs its own past
- Other Factors: Other key factors are company’s PEG, Dividend Yield (upgrade) and Extreme valuations (downgrade)
Valuation Grades- Companies are rated on the below scale
- Very Attractive
- Attractive
- Fair
- Expensive
- Very Expensive
- Risky
Financial Trend: Latest results trend
Financial trend looks at the latest results of the company and measures the momentum in the key financial parameters. It looks at various parameters across periodic results, annual profit and loss, balance sheet, shareholding (ownership) and cash flows.
For instance, trend in quarterly revenues would incorporate the growth rate, the trajectory of growth, consistency of growth etc.
Financial Trend Grades- Companies are rated on the below scale
- Outstanding
- Very Positive
- Positive
- Flat
- Negative
- Very Negative
Technicals: Near term price and volume momentum
Technicals look at the near-term price and volume momentum. Through Technicals we try to catch the underlying trend in the stock, and combine it with fundamentals of the company for better timing decisions.
We look at the below parameters
- MACD- weekly and monthly
- Bollinger Bands- Weekly and Monthly
- RSI- weekly and monthly
- KST- weekly and monthly
- OBV- weekly and monthly
- Dow Theory- weekly and monthly
- Moving average- Daily
Dot Combinations and Final Score
Once a company is evaluated on the 4 dots, relative importance to each dot to arrive at the final Mojo score is determined using a dynamic model which monitors the relative importance to be given to each dot and modify the weights when necessary.
Q: How is Debt to Equity ratio calculated?
- Ans: To calculate Debt to Equity we use Net Debt and divide it by the Book Value of the company. For Net Debt we deduct cash and marketable securities from total outstanding debt
Q: What is the source of company news?
- Ans: We currently aggregate news from across the web. We curate news periodically from across multiple news agencies and present the headlines. To read the articles you will be redirected to the news site.
Q: How do you calculate Beta of a stock?
- Ans: We compare the stock price movement against Sensex movement over the last 1 year. Beta of the stock can be viewed in the Returns section on the stocks page.
Q: When is shareholding updated on the site?
- Ans: Shareholding pattern is declared by the companies on a quarterly basis.
Q: How do you calculate PE ratio of a stock?
- Ans: To calculate PEG we divide PE ration with 1 year profit growth, trailing twelve months (TTM) To calculate PE ratio of a company we divide the Market Cap of the company with TTM profit of the company. We use consolidated profits wherever available. From profits we remove one time exception items (tax adjusted).
Q: How do you calculate PEG ratio of a stock?
- Ans: While calculating PE its the current market cap divided by trailing twelve month (TTM) profits.PEG we use the PE ratio of the company and divide by 1 year EPS growth
Q: How is valuation calculated?
- Ans: We believe a company with stronger fundamentals can justify higher valuation multiples but a company with weak fundamentals cannot even justify lower multiples. In our relative valuation measure we look at the below key parameters
- Fundamental valuation: By looking at the relationship of the fundamental variable and valuation multiple we arrive at the regression equation to calculate where the company at its current fundamentals should trade. We adjust this derived number for the company’s sector and its own growth and debt levels. We then compare where the company is trading vs where it should trade.
- Past Valuation: We measure the difference in the premium / discount which the company is trading at vs its own past
- Other Factors: Other key factors are company’s PEG, Dividend Yield (upgrade) and Extreme valuations (downgrade)
Q: What does the technical graph represent?
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Ans: The graph represents our overall technical score which is derived from weekly/monthly and daily (moving average) parameters. It shows at which level our techncial call on the stock changed.
You can get graphs and details of each of the parameters by clicking on View Details button next to the Header (Technical Trend) Q: Can an expensive company be rated Buy?
- Ans: Mojo Call is derived using all 4 dots of Quality, Valuaiton, Financial Trend and Technicals together. If the other 3 paramaters of a company are positive, the company can still be rated a Buy or Storng Buy even with an expensive valaution. We strongly urge that while taking an investing decision please looka at the Mojo Call since it looks at all 4 Mojo Dots together and not look at one dot in isolation like valuation.
Q: What does the valuation meter represent?
- Ans: Valuation snapshot (meter) displays the price ranges at which the valuation grade of the company would change. The valuation meter may not be available in some scenarios like, due to intraday mvoement the valuation grade would change basis the meter, or valuation grade remains same same for a very big range.
Q: How is the weight to individual dot decided when calculating Mojo Score?
- Ans: We use a dynamic model which allocates weight to each dot basis the parameter by looking at overall success rate, performance of each grade and model portfolio performance.
Q: Which companies are Not Rated on MarkesMojo?
- Ans: Currently we do not rate Insuranc eand holding companies. We are creating a model to rate these companies and will have ratings of these in the near future. Apart from these new companies where we do not have enough data for our analysis, companies with erratic trading behaviour or very small companies which do not meet our minimum threshold are not rated.
Q: How can I time the market?
- Ans: Timing the market is extremely difficult and we do not recommend taking this approach. At MarketsMojo we believe in taking stock specific approach. We will help you identify the stocks doing well fundamantally and technically in the current market scenario.
Q: What is the target price and stop loss for the calls?
- Ans: We do not have target price or stop loss for our calls. As long as the company has a high Mojo Score derived from its fundamentals and techncials, we will continue to maintain a high rating on the company.
Q: What is the holding period for the calls?
- Ans: We do not have a fixed holding period for our calls. As long as the company has a high Mojo Score derived from its fundamentals and techncials, we will continue to maintain a high rating on the company.
Q: Why are IPOs not listed?
- Ans: To evaluate a stock, we need a minimum tenure of history of financial results and price movement. Once the stocks are listed and have been trading for a minimum number of days and have declared the required number of results, our model automatically starts rating these
Q: How is Corporate Governance of a company assessed?
- Ans: Corporate Governance is captured in the quality section as methodology uses multiple long-term data points across Business Quality and Management Quality and takes into account factors like Growth, Efficiency and Capital Structure.
Q: How do you incorporate impact of news on the comapny's rating?
- Ans: We do not consider news in our analysis. Our methodology works on a big data analysis engine and we works with the fundamentals and market (price and volumes) data of the company. News may or may not impact the stock price, we will update our rating when the impact reflects in the financilas or price movement.
- Q: How to add stocks to my portfolio?
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Ans: If you wish to upload portfolio directly, you have to click on Add option under Portfolio section and then click on Import stocks, select Broker's name for example ICICI direct and then continue, you will get demo videos of how to upload the file here.
If you wish to upload it manually, you can select the Search & Add stocks option. Kindly note that you can upload 500 transaction at a time. In case if it is more than that you have to upload it part by part.
- Q: How do I make changes to my portfolio stocks?
- Ans: Add/Edit/Sell/Remove Stocks from the portfolio
Select the account in which you want to make the changes
Add Stocks
- Click on Add
- Select Search and Add to add stocks individually
- Search the stock
- Enter the details of Quantity, Investment Date and Investment Price
- To continue adding stocks click on Add More Stocks
- Click on Save To Portfolio to add the stocks to the portfolio
- Select Import Stocks for Bulk Upload
- Select the source from which you want to import
- You can choose the MarketsMojo format or the other available formats
- Download the file from the source site, for help you can use the demo videos where available
- Upload the file
- Verify the transactions and Click on Save to Portfolio
- Please note you can upload up to 500 transactions at one time
Edit Transactions
- Click on More and Choose Edit Stocks
- Choose the stock and modify the details
- To remove the entry click on Remove
- Click on Save to insert the changes
- You can also edit your current holdings by clicking on Edit below the stock name in the Portfolio Tracker
Sell Transactions
- Click on More and Choose Sell Stocks
- Choose the stock and update the details
- Click on Save to insert the changes
- You can also Sell your current holdings by clicking on Sell below the stock name in the Portfolio Tracker
- Q: Where do I see my transaction history in portfolio?
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Ans: You can see all the buy and sell transaction and realized gain amount (profit) from selling a particular stock under Transaction Listing. You have to go to more options under portfolio section and choose transaction listing option you will get all the details.
You can check Profit and Loss of your portfolio from inception under your holdings section, you can see P&L % from Unrealized gain column. The percentage that you see is your profit.
- Q: What is composite index and how is it calculated?
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Ans: As every portfolio is unique, we create a customized benchmark index basis your portfolio allocation to Large, Mid and Small/Micro cap stocks. Basis your allocations, we virtually invest your investment amount in BSE Sensex, BSE Midcap and BSE Small cap and then track the investments in these indices. The purpose of creating a composite index is so that you always have a right benchmark to compare your returns with.
- Q: What is the difference between Mojo Stocks and Model Portfolio?
- Ans: Mojo Stocks is the list of our highest rated stocks from across all 4000 listed stocks. Company remains in the list till it has a high rating.
- Model portfolio is created from our pool of top rated stocks keeping in mind the aallocations across stocks, sectors and market cap basis the portfolio profile selected. Once a model portfolio gets created we track it closely and will update you with a suggestion to switch out of the stock and into a new stock basis the amount which would have been realised after selling the stock.
- Mojo Stocks is a list of stocks and there are no restrictions in terms of number of stocks which can qualify from a market cap or sector while in model portfolio allocation across categories is closely monitored
- Q: Will the model portfolio be have the highest rated mojo stocks?
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Ans: In Model portfolio we consider allocation factors as well while generating the portfolio which is allocation across a single stock, sector or market cap in line with your chosen risk grade. We also look at liquidity of the stock basis traded volumes etc.
Hence the model portfolio may not always include the top mojo stocks
- Q: The Price at which I traded in Model Portfolio suggestion was different from the price. How do I edit the proces?
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Ans: While generating model portfolio suggestions we use the last available price and assume that the trades are being executed in your model portfolio. The prices at which you execute the trades may be different. Currently you cannot make modification to the model portfolio prices. We recommend that you create a new portfolio account in your portfolio analyser and update your actual trades to monitor the performance. We strongly believe that over the long term the variation in process in your virtual model portfolio and actual portfolio will even out.
- Q: What is included in the returns displayed on Model Portfolio?
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Ans: We display total returns which include the realsied return from stocks sold, unrealsied returns of stocks currently in your portfolio and any dividends received.
- Q: A stock exited the mojo stocks list but is still part of the model portfolio, why is this so?
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Ans: A company would leave the mojo stocks list automatically once its rating falls below the Buy category. However, in model portfolio there are various other parameters applied when exiting a stock. A stock may continue to remain in model portfolio of users in some cases even when it is a Hold, however, this stock would not be recommended to be bought for new users.
- Q: How Much Can I Invest via Model Portfolio?
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Ans: You can create up to 5 Model Portfolio and in each Model Portfolio you can invest between Rs 1 lac to Rs 1 crore
- Q: How Many Model Portfolios can I create?
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Ans: You can create up to 5 Model Portfolio and in each Model Portfolio you can invest between Rs 1 lac to Rs 1 crore
- Q: If I start a Model Portfolio, how will you advise me on the portfolio?
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Ans: 24x7 monitoring of stocks
MarketsMojo’s analysis engine runs 24x7 and monitors the developments in the portfolio stocks and other stocks in the market
- Q: How is MarketsMojo’s Model Portfolio different?
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Ans: The Two USPs of Markets Mojo are - Human Assisted Big Data Analysis and Unbiased Investment Approach
Human Assisted Big Data Analysis
Multiple analytics processing more than 500 data points on each company daily
Each listed company is graded on 4 Key Mojo Parameters of
Quality: Long Term Fundamental Strength
Valuation: Attractiveness of stock at current price
Financial Trend: Latest Quarterly Result Performance
Technicals: Price and Volume Trend
After the refining process of Mojo Process, the Investment committee takes a call on each stock which is added or removed from the Model Portfolio List
Unbiased Investment Approach
Being an automated process we avoid the biggest Investment Trap- Human Biases
We follow a Disciplined & Process-driven approach which does not allow biases to creep in to the investing process
Clients should follow the process diligently to achieve the intended returns
- Q: How is the Model Portfolio Created?
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Ans: For every user a unique portfolio will be generated within seconds basis his
Timing of Investment
Amount of Investment
Unique Daily portfolio does not mean there is churn every day
A stock will be churned only if its own parameters deteriorate
Model portfolio will be generated based on the top stocks as per Mojo Strategy at the time of investment.
A new model portfolio is generated each day and users who enter at different points in time can have a different portfolio.
Once a user saves a portfolio, he is then tracked basis the stocks that were suggested and any churn based on the parameters of these each stock.
A new portfolio does not mean that stocks in the previous portfolio have deteriorated, it simply means that at any given point of time we would help users invest in the highest rated stocks at that time.
- Q: Will MarketsMojo execute the model portfolio trades?
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Ans: No, MarketsMojo will not execute the trades
At MarketsMojo, we help you create and maintain a model portfolio, you are free to transact with the broker of your choice
We will send an email and an app notification whenever a change needs to be made
This change will also be reflected on your saved model portfolio transactions page
For return calculations and further tracking we will assume that you have executed the suggested changes
Based on your executed prices your actual returns may vary from the returns displayed in the model portfolio
- Q: How will MarketsMojo know if I have followed the advise?
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Ans: Since you need to execute the trades with your broker, we do not know if you have actually executed these trades.
Hence, we assume that you have taken portfolio actions as suggested and base our future suggestions on this assumption
- Q: Would MarketsMojo consider my existing portfolio before advising in Model Portfolio?
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Ans: No, this is a new portfolio
If you want to make improvements to your existing portfolio, please check the Portfolio Optimizer.
- Q: What is the period of investment in Model Portfolio stocks?
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Ans: We would suggest an investment horizon of 3 to 5 years in the strategy. The holding peirod of underlying stocks would vary.
There would be multiple entry and exits throughout the life of the product, we would strongly suggest that you follow the strategy changes in a disciplined manner, else the expected and actual returns may be different.
- Q: Will MarketsMojo give target price and holding period on every stock in Model Portfolio?
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Ans: No, we do not provide target price or holding period on individual stock.
We would suggest changes to the portfolio if there is a change in fundamental or technical variables of the underlying stock.
There would be multiple entry and exits throughout the life of the product, we would strongly suggest that you follow the strategy changes in a disciplined manner, else the expected and actual returns may be different.
- Q: Can I add or remove investments from the model portfolio
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Ans: Yes, you can Add or Reduce Invetsments using the buttons from the Menu
- Q: I added investments to my model portfolio, now the number of stocks that I hold has increased
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Ans: In the model portfolio when you put additional investment it will first try to allocate within your portfolio stocks. However, it may sometimes happen that, some of these stocks may not be in our current buy list. It may still a hold for existing user but not being recommended for new users. Reason for this can be because maybe its results are coming in next few days or it may have hit a liquidity threshold.
In this case we will try to allocate as much in the existing stocks keeping in mind the overall single stock, sector and market cap limits. If even then cash remains we may suggest you to add new stocks.
Because of this in the short term the number of stocks which you hold may increase. However, over time when stocks get sold and cash gets generated we would again reallocate within the stocks and bring down the number of holdings.
Even if the stocks increase the allocations will be basis your chosen profile so that the construct remains in line
- Q: What returns can be expected from the model portfolio?
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Ans: There are no guaranteed returns from the strategy.
This product is linked to movements in Equity Markets which can be volatile.
Please read the disclaimers before investing.
- Q: Can I make a payment directly to the bank?
-
Ans: Our Bank account details
All Payment to be made in favour of "MOJO MARKETS PVT. LTD."
Bank: ICICI Bank
Bank Account: 032305003044
RTGS/NEFT/IFSC Code: ICIC0000323, MICR No. 400229041
Branch : Lower Parel, Trade World, B Wing, Kamla Mill Compound, S B Road, Lower Parel West, Mumbai – 400013
Please note: Kindly send us the transaction details after the payment is done. We'll check the same from our end and activate your account.
- Q: Can I extend my current subscription?
-
Ans: If you are an existing customer you can extend your package by subscribing to a new offer. You new subscription period will start after the current subscription period ends.
- Q: How can I get historical perofrmance of your calls?
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Ans: In the Mojo Stocks section, you can go to the Recent Changes section. Here the stocks which are currently in the Mojo stocks or were in the past are mentioned along with their performance since the day they were added till the day they exited (or current price if stock is still in the list. The perofrmance is compared with Benchmark in the same period.
- Q: Are there human interventions in your rating?
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Ans: The Mojo Score is calculated automatically basis the underlying fundamental and technical analysis of the company. For a stock to qualify as a Mojo stock and become part of the pool of stocks which can be added in Model Portfolio or Portfolio Optimization, it has to be approved by our Investment Committee which may reject a stock to be added to the list on grounds of corporate governance issues or continuity of business case.
- Q: What is the target price and holding period of Mojo Stocks?
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Ans: We do not provide target price or holding period on individual stock.
A stock would remain a Mojo Stock till its Fundamentals and Techncials support it and it rates as one of the higly rated stocks.
- Q: How would I know about changes to Mojo Stocks List?
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Ans: Whenever a stock enters or exits the Mojo stocks list we send mobile app and ons site notification to our paid subscribers. We also send a weekly consolidated email on the changes to the list.
- Q: What is Stock of the month?
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Ans: Ans: From our pool of top rated Mojo stocks, our Chief Investment Officer (CIO) picks one stock opportunity every month which is sent to the paid subscribers of MarketsMojo on the 10th of every month. Our CIO does a qualitative assessment of this stock on top of the Mojo Score and Call to identify the top opportunity for the month. A detailed research report is also shared with our subscribers explaining the investment case in detail.
- Q: What is Portfolio Optimization?
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Ans: Portfolio Optimization is a process by which we identify the issues in your current stock portfolio, and we suggest the changes you need to make to strengthen your portfolio based on your chosen risk preferences.
There are 4 stages in the optimization process
Portfolio Review
Choose the parameters for optimization
Modifying Existing Portfolio
Creating new portfolio
The approach is fully customizable, we will provide the optimal choices which you can modify
- Q: On what basis would my Portfolio be Optimized?
-
Ans: Your portfolio would be optimized to improve two key elements of your portfolio
Stock Selection- we would help you to shift your portfolio from fundamentally weaker stock to stocks which are currently doing better across fundamental and technical parameters
Portfolio Construction – we would assist you to correct the allocation issues in your portfolio so that you are not over or under diversified based on your chosen risk profile
- Q: How do my returns impact my portfolio optimization?
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Ans: Our first analysis is of the returns that you have generated in your portfolio. The return analysis helps you identify your portfolio actions which have contributed to your returns so far and which have been a drag for you.
The portfolio optimization process looks at your current holdings and suggests the modifications based on what you hold today.
Even though return analysis does not directly contribute to your portfolio optimization, it’s a good place to start.
- Q: What are Portfolio construction issues?
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Ans: Many times, we buy stocks and our portfolio gets created. We do not think how this one stock fits in tour overall portfolio.
In construction issues we identify
If you are holding ideal number of stocks
If you have tail stocks in your portfolio- these are the stocks where you have invested such a small amount that even if these stocks perform very well or very poorly it will not have any material impact on your portfolio
If a large proportion of your portfolio is invested in a few stocks
If a large proportion of your portfolio is invested in one sector
If the quantity you hold of a stock may lead to liquidity issues when you want to sell
- Q: What are stock selection issues?
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Ans: Stocks that you hold are the most important factor which will determine the future returns that you generate from your investments.
Our big data analysis run multiple more than 500 analysis daily across all 4000 companies and rates each stock over 4 key parameters of
Quality: Long Term Fundamental Strength
Valuation: Attractiveness of stock at current price and fundamentals
Financial Trend: Latest Quarterly Result Performance
Technicals: Price and Volume Trend
- Q: How is my risk level assessed in Portfolio?
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Ans: Risk profile is essential to know your mindset about your return expectations and your willingness to take risk. Higher the expectations, higher the risk you may take.
Based on your portfolio holdings, we pre-calculate your Portfolio’s risk profile and categorize each portfolio into 5 categories from high to low. The assessment is of your equity portfolio and not of your investment status.
You can modify your risk profile basis your expectations and we will help you optimize your portfolio accordingly
Portfolio risk categories
Very Aggressive Risk Portfolios can do very well in rising markets but tend to fall equally hard when markets fall. In general, these can have very high concentration in terms of stocks and sectors and /or are mainly invested in the smaller stocks.
Aggressive Risk Portfolios may generate returns higher than market returns, however, tend to fall more than the market when the markets fall. In general, these are concentrated portfolios and can have a large portion invested in small and micro-cap stocks.
Moderate Risk Portfolios have a risk level closer to the broader market. These portfolios are generally diversified but also have a few small and micro-cap stocks to increase the potential return.
Conservative Risk Portfolios are designed to take lower risk than broader market and hence may generate returns in line or lower than market but are much less volatile and may lose less when markets ae negative. These portfolios are generally well diversified across sectors and invested in High Quality Large and Mid-Cap stocks
Very Conservative portfolios are generally constructed in order to minimise the risk. These portfolios generally have lower but relatively stable return profile and invest in a well-diversified manner across sectors and almost exclusively in High Quality Large caps companies.
- Q: On what basis are you suggesting the stock changes in my portfolio?
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Ans: The changes are based on your selections of Risk Profile and Investment Preferences. You can find out the reason for suggested action on each stock by clicking on Stock Details in front of each stock
The suggestions are broken into 3 categories
Hold: These are fundamentally strong companies where we feel you should continue to be invested in
Review for Trimming: These stocks are fundamentally strong, but you have allocated more than the advised amount in these. We suggest that you partially reduce your holding in these stocks
Review for Switching: These stocks are either fundamentally weak or do not fit your chosen risk preference
- Q: How do I modify your suggestions on my portfolio optimizer?
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Ans: You can drag and drop a stock from one category to another basis your judgement. You can also click on Edit Qty next to the stock name to modify the suggestion.
You can also modify the whole bucket by clicking on Edit button located next to the number of stocks identifier in the bucket
Please note by modifying the suggestion your portfolio may not be completely optimized
- Q: How have you chosen my new market cap allocation in Portfolio Optimizer?
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Ans: New market cap allocation for your portfolio is based on the stock actions that you have chosen on your current portfolio
We have mentioned the ideal allocations, but you can modify these based on your preferences
- Q: How do I add new stocks to buy from the suggested list in optimizer?
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Ans: For each category we give you suggested stocks and the ideal number that you should add. You can choose from the available options basis your preferences
- Q: Will I be able to transact all the changes suggested in Optimization?
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Ans: At the end of the process all the trades that you have chosen to do are mentioned. You can download a deal sheet of these and send to your broker for execution or use the sheet for reference while executing trades yourself. You cannot execute the trades from MarketsMojo platform.
- Q: Will the optimizer changes reflect in my portfolio?
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Ans: No. Since we do not have any way of knowing that you have executed these trades, you would have to update your transactions after you execute the trades.
- Q: When should I optimize my portfolio again?
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Ans: There isn’t a fixed interval for optimization. Once you create your portfolio, we do constantly update you on the key updates of your portfolio stocks. We recommend that you do optimize whenever there are any adverse changes in your portfolio stocks or at least once a month.
- Q: Is my mutual fund portfolio also optimized?
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Ans: No, currently only your equity stock holdings can be optimized.
- Q: How are mutual funds analysed?
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Ans: 3 Broad Factors Used for Evaluation
- Performance: Past performance of the Fund is compared against the benchmark and peers with emphasis on consistency of returns rather so that recent periods do not unduly influence the overall rating
- Risk: Risk measures of the fund are compared with benchmark and peers over the period. Fund’s ability to generate return per unit of risk taken is measured along with liquidity and portfolio concentration measures
- Portfolio Strength: Strength of the portfolio by rating the underlying constituents and comparing it across the peer funds
Factor Weight
We run multiple combinations of weights across the factors and measure the performance of each combination in terms of the success rate and performance of funds which qualify for our buckets of Buy, Hold and Sell using monthly rating update
Parameters Calculated
We measure the following matrices
- Return generated by each bucket using monthly update
- Returns generated using annual rebalancing
- SIP returns
- Success rate of categories
- Performance vs benchmark
- Distribution of bucket returns
Method Selection
All the methods are evaluated across the parameters and scored to arrive at the best method for each fund class
The methods are evaluated periodically to measure if a change in method is required
- Q: How do I get the best funds across all categorie?
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Ans: Currently the Mutual Funds are only analysed within their category
- Q: I am looking at a Fund but it is not rated, why is this so?
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Ans: We require a minimum history of 3 years to evalaute the Fund's peroformance and hence new funds will not be rated. Also, since the rating is within the category we require minimum number of funds in the category for the category to be rated. We are currently not rating a few ccategories like liquid, ultra short term funds, FMP etc.