Comparison of my cap-wise equity MF’s vs Nifty cap-wise
Showing an overlap of companies in various equity MF’s that I have invested in.
It should not be the case, that I am investing in 5 MF’s but in the end, all of them have 70-80% portfolio intersection.
I think you could include the following in your next iteration of this product:
Separate debt and equity analysis.
Comparison of only the equity part to the nifty 50 and not the debt component.
could compare the debt component to some crisil index of funds or any other prominent debt index.
considering only the large cap index is properly developed comparing returns of of large cap products to nifty 50 and next 50 make sense.
The other funds although can be compared with their relevant benchmarks but considering they aren’t as developed as the nifty 100 benchmark it’s better if you compare them with the funds in the same category.
Overlap of companies present in various funds.
7)Give alternatives for the funds probably that a customer should change with a precise reason and a concise explanation.
Provide the data wrt to the present funds and prospective funds for the customer. Data like alpha, beta, Sharpe ratio, standard deviation with the relevant explanation will help the customer evaluate the risk adjusted return as well as the volatility with respect to his risk capacity and tolerance.(This could be done with the help of charts,graphs and through analogies as well).
9)Stressing wrt sticking to the customers asset allocation.
Importance of direct funds instead of regular unless the customer perceives value from the service rendered by the advisor.
(Even you will be giving service in the future probably for a fee so if the customer sees value you could tell him that if he sees that he is benefiting something from the alliance it’s okay to pay).
PS:The product is a good first try and I am sure it will only improve from here. Excited to help the team in any which way I can and it is so refreshing that a company is keeping the customer at the forefront and building a banking experience around him. All the best team.
First of all this product is very good. I really loved the fact that I could get a summarised analysis in one shot rather than working on excel and google sheets. Few remarks
As highlighted, the report doesn’t take into account all MFs. For me for some reason MFs from SBI were not part of the report
The equity comparison with NIfty 50 index is fine. What could be bonus is a datapoint which shows your investment would have been XXXX at cost of YY instead of AAAA at cost BBBB
This will be even more helpful in terms of SIPs as it could show that 10 year SIP vs 10 Nifty what could be the potential value. This way if the SIPs are performing badly, the customer can switch
Definitely separate out Debt and Equity comparison
Also for someone who has some individual equities also in the portfolio, it will be helpful to include the same.
First, superb job on starting this wonderful project to co-create the future of banking.
Quick Thoughts
The current mutual fund analyzer tool report is clean. It covers most of the important points. While you can keep adding more and more to it, the simplicity of it is an equally important draw.
Product Fixes
Debt MFs comparison with NIFTY 50 is not relevant or actionable. It warrants a different section like @Lakshmisha_KS & @cric_freak also calls out.
“When will I hit 1 Cr?” section may not be relevant for all the users. It makes sense to either build a field where the user can enter their target amount X OR we make a better guess on the target amount based on the CAMS report overall holding, if adding that interactive feature is not viable.
Product Recommendations
To maintain this clean and interpretable output, my recommendation is to not add the alpha, beta, Sharpe ratio etc. in case it is on the roadmap. Instead, highlight if any of them are relevant, with the layperson explanation for it (similar to the portfolio risk page projecting volatility in the next 1 year).
Showing the MF investor the actual underlying stocks she holds across all the equity MFs is a great idea:
it educates the average MF investor about the actual tangible companies that they OWN and are generating value for the MF investor
it helps the investor understand if they’re over or underexposed to a company/industry of interest; and about the stock overlap across MFs they hold
Here it will help to advise the user on how to diversify their MF to make the underlying holdings more mutually exclusive, and in line with her goals.
This brings me to the point on goal-based investing and correspondingly goal-based MF assessment. Current version of the tool is a broader analysis of the MF portfolio irrespective of the investor’s age, goals etc. Going one level deeper here to personalize based on goals will be relevant for a future version of this tool. So we can dig deeper into what specific features to build later. But, I wanted to put goal-based MF assessment in the product backlog.
Speaking of product backlog, can I add one more? A user-friendly Capital Gains report with a short guide on how I can use the values to file my taxes.
“Others” category in ‘Sector Mix’ page: add a * and write one line below with what these sectors are mainly, if ‘other’ is >25% of overall holding.
When CAMS has most of the schemes covered, I guess Axis , Franklin etc are not, hence a consolidation would help. Also, I have been feeling a pain to change the bank mandate and it doesn’t happen online without visiting the branch, With video KYC, e-Cheques , e-Passbook, JAM , this should be easy to crack.
In section ‘Portfolio Risk’ - you have mentioned numbers after just considering I won’t invest anymore SIP’s for the next one year, but you have forgotten for almost all users, it would be SIP portfolio so you should mention an FYI that with the same rate of monthly SIP’s you may have ‘X’ number + interest on it as per “8-12%”.
(something like: we have seen you are investing 15k/month, if you are gonna work at the same pace then you can earn amount X on medium aide, amount Y on the lower side and amount Z on the higher side.)
Benchmarking the breakup of Equity split (including large, medium and small caps), debt and alternate funds
Further breakup of major stocks contributing to the portfolio
comparison with benchmark returns in confusing. Return vs nifty 50 numbers are tough to interpret and Nifty50 has been taken as benchmark for all types of funds including liquid funds.
In the given world now, there have been many millennials have started investment and many invest in SIPs and may not sure of the few terms which is being used in the Reports and Markets.
So it would be great if you could add a built in meaning clause which would get activated when the cursor is on that word - Say NIFTY or XIRR.
Next option would also be to add a calculator to calculate what amount a person would want within a few years or say a retirement amount and how much SIP or investment would that require and the risk what he could take.
Say you could take an Approx amount a user would lile to invest every month, let the user choose the risk he would like to take on that, based on which you could directly code it to provide the list of Funds which are having such debt equity ratio and past performance, however the risk would still be at the hands of the investor and u r not providing any advisory for investment. Post which, you could also calculate how long would it take to earn that target. If the period seems too far, the user can choose the year ny which he needs that amount and the code can recalculate how muh should the person invest every month for it. This could be a free product which will attract people to the website.
One of my other plans is on a subscription basis, where a person willl get a detailed analysis of all his investments every month end and if there is a bad day in the market, you can immediately send a report on the day’s performance. These people should also have access to generate a report anytime.
Keep up the good work guys, looking forward for using the final product.
The Nifty 50 benchmark time period is not defined. This data without the time period can be misleading. the investment time period is quite important.( eg last 3 years, 5 years etc)
The return shown is of the entire investment in an MF. Currently, my chosen ELSS has not given the best returns. I know that. The platform should recommend funds to which i could switch & diversify my risk. Re-balancing as a feature.
The fund performance should not only be done with Nifty50 but with the MF category. The category performance should be shown with the funds performance. All Mutual fund investors might not be equity investors ( like my mom ) they will be happy to invest in the category leader.
To make investing more simple, it would be a good idea to suggest to the user when to invest. 1st week of the month, every Thursday etc
Sector Mix data point only addressed one side of the story. It gives no insights into the important micro details. I might have a good spread but high overlap of companies. That is not good.. We should add an indicator to show if there is too much concentration of investments in one company
In the last advice section, it would be nice to give alternates to a debt fund: VPF & PPF. They are not defined as debt but they give above 7% & are good alternates
Hey guys, wonderful initiative and what I really liked was the clean UI/UX.
Now if we think about who’s gonna be using this, we’ll have: singles just getting into investment, older individuals planning their portfolio, or couples planning their future together. For the latter, they may have a ‘joint’ investment strategy and hence an ‘aggregate’ profile which the tool is going to miss out on as it currently gives an individual analysis.
Hence just an option to add an email and upload two statements (with the active upload of anothet statement being the consent here from the spouse/partner). The analysis will then just be aggregated across the two statements (plus you get another user!). Probably easier said than done but the milestones etc would make a lot more sense for a couple investing together.
I also echo some of the points raised here about the 1Cr milestone being quite on point but there could be an option to play around with the amount/time to better suit the needs of the user. An option to increase or decrease the amount in 25 lac intervals would help. But for me, the thing that would work best would an option to ‘see where you get to at the same pace by the time you retire’. So, with the DOB you can predict a retirement age and show a corpus (even adjusting for different ages of retirements for a multi-person report). The icing on the cake would be to have the retirement age adjustable on the UI.
I’m currently solving most of the problems above myself on an excel but INDmoney has a good ‘family’ dashboard which is able to track investments made by me or my wife and we both can switch profiles and see how we’re doing.
The portfolio analyser is helpful in making sense of portfolio performance. Liked the simplicity and the actionable insights.
I have a few points to suggest-
Sharpe Ratio (and/or Sortino Ratio)- it makes sense to see returns on a risk-adjusted basis and guess, it isn’t that hard to understand.
My Top 3 Fund Managers- some Fund Managers are consistent or you just love their style even when they switch the Fund, you follow them. Like I avoid my fund being managed by Sankaran Naren but would follow Rajeev Thakkar and Anil Ghelani wherever they go. If you could tell me the top, say three, fund managers who have been managing most of my portfolio that would be awesome.
Responsible investing/ Exposure to Restricted Sectors- some people like to be socially responsible. Knowing about their exposures to certain stocks violating ESG restrictions (eg. Tobacco, mining, alcohol etc.) would be helpful.
Factors of Investing- 2020 wasn’t that great for value stocks as it was for momentum and growth stocks. Showing portfolio composite divided into the following standard five factors of investing that essentially governs the market …
Factors of investing:
Value
Momentum
Growth
Earning Quality
Financial Strength
Factors of investing could be a very actionable insight helping to decide where to divert the portfolio in view of the factors currently dominating the market.
The MF analyser retrieved some other Portfolio instead of mine. This may be because someone had inadvertently used my ID as their registered ID. This could cause a reputational risk for Jupiter. Having a PAN / Aadhar linked retrieval may be foolproof.
Other comments -
In the first page, an indicator would be helpful to identify how good my overall snapshot is. This is coming out clearly only for the avoidable fees. e.g. A balanced scorecard or an indicator to specify if the existing facts are good e.g. Portfolio mix - LArge cap skew is a factual statement, but is it recommended, is it good ? that would be a good indicator. The sector mix is indicated as balanced, however i find in the report that investments were marginal in high performance sectors
In the investment growth page, it will be good to ask what the goal is and then populate the achievement milestones. A standard 1 Cr figure may not be appealing for all and each may have different milestones. This step could also be a trigger for engaging in a input gathering / goal calibration and associated investment recommendations
In scheme performance, the team can also provide insights into the top performing schemes in the respective categories as an extension. This could be an opportunity cost
I liked the scenario analysis, here, user engagement to synchronise the inherent risk appetite with the portfolio risk can be made so as to take future corrective measures if any
In sector mix, recommendation for enhancing exposure in select sectors can be made
Avoidable fee part is good
In next steps, i am able to relate to the immediate actionables, but the food for thought section seems a little out of context
The above points in which i speak about user engagement, i am recommending the report to have an interactive mode for additional data gathering and interaction
One more feather in the cap would be to make people understand about the TER of the various mutual funds , it keeps on changing without us knowing the impact, Since Jupiter has already taken this task, it would be great if you can educate and notify the ‘impact’ as and when the TER changes.
Thanks @sneh.baxi for this. Looking forward to join the beta program. I had emailed the team few weeks back regarding this, and haven’t heard back yet, but i guess due to Covid, it has been a bit rough. Just a quick doubt, as i understand the sign up for Beta Program has been happening since a long time and now, the Firstlist registration is happening since the last month. So what is the difference between the Beta program and the firstlist? Because, once the beta program is done, the first phase will start to public and moved to second phase. So is the Firstlist registration for the public for being in the first phase? or how is it? Thank you in advance.
The first list is for those who will be onboarded when Jupiter goes public. We will get it before them in the beta phase as we have been selected for it. Hope that helps🙂
to this topic with Your Suggestions.
