Last week saw the launch of a new tool called MoneySights. I was one of those with an early invite to test it out. So here I am, pleased by it, and blogging it’s review, because I know many of us need it!
First impression of MoneySights is an amazing usability. It is intuitive, clean, uncluttered, fast and neat web 2.0 interface. It really isn’t very common for an Indian company to create such experience!
So what is MoneySights? It’s a fusion of various tools which will make the life easier for any investor.Today, a common Indian investor is hesitant, if not totally cynical about his investments. This is where MoneySights helps minimize the hovering indecisiveness through various tools. Here’s a detailed service synopsis for the intelligent investor:
You can discover great stocks and mutual funds with MoneySights. It helps you plan investments in a better manner. Here’s how:
You can compare and find stocks using criteria like market cap, upside potential, financial strength etc. For easier comparison, MoneySights enables a selective view where you will see only those columns you want. Further, an advanced view filters stocks in your desired range on basis of EBITDA, P/E ratio, financial strength rating or any other metric you want to use.
You can even shortlist to tsee the stocks only from Large/Mid/Small cap or from a particular sector (Auto/Banking/Tech) or indices (Nifty/Sensex/BSE-100 and more).
While hunting for a catch here,I realised that its nothing but these parameters that anyone will use in finding the best suitable stock! In fact as a plus, their tech team knows how to put it all together nicely!
This is the kind of table your search results will yield. Here, you can go inside any stock link to find out more details about that particular stock.
Apart from usual features like graphs, gain/loss, traded volumes and P/E, this page has more to offer for a stock researcher. It shows comparison of a stock’s return with its counterparts in same sector, indices, Bank FD and Gold for a selected time period.
MoneySights has also devised an algorithm to find out financial strength of a stock (in terms of star ratings). The ratings are largely based on four aspects:
- Company’s current financial position
- Company’s income generation capability
- Efficiency of running its business.
Here’s a screenshot of RIL (Reliance Industries Ltd) to give you an idea of tool.
Similar to stocks, you can research and find great mutual funds in MoneySights. You can sort fund on basis of fund size, return grade ratings, safety ratings, YoY returns.
Funds can also be filtered by categories like Equity (diversified/Tax saving/Index/Sector/Balanced) or Debt (Short/Long term/FMP/MIP/Money market) or by fund house (with multiple select option).
To research more into a fund, you can click on fund name to go in details.
On MoneySights, an individual detailed mutual fund page shows
- Its return comparison with SENSEX/NIFTY. SENSEX comes by default is for 2 reasons – consistency of comparison & at times some funds who have wierd benchmarks like MSCI, Customized benhmarks – data for which isn’t available. So, MS have a drop down to select which graph to show.
By a popular belief it’s considered that a fund is not good if it can’t beat its benchmark index, which makes it an important parameter in fund selection.
- Comparison with category avg returns and where the fund stands among its peers.
- Fund’s Performance Report Card consisting of Return grade (similar to ValueResearchOnline) and Safety grade.
- Graphs with details such as fund’s allocation to equity, debt and money market.
- Graph with investment distributed sector wise.
- Graph with percentage allocation to different stocks.
You can enter an investment amount, your risk profile and system suggests you an investment plan.
This is great tool for starters. You can put any investment value between 10,000 and 120,000 and based on your risk appetite, system suggests where to put your money. It automatically divided the amount into safe (PPF and NSC) and equity based (ELSS) investments.
In equity based investments, it shows top ELSS mutual funds showing their annualized return over last 3 years.
Click here to try out this tax saving recommendation tool yourself. Below is a screenshot from the tool. Click on image to enlarge.
Improvement Areas: Well even God isn’t perfect! So here are some grey areas in this MoneySights tool!
- Apart from NSC and PPF; NPS and tax saving fixed deposits could have been added.
- NSC is taxable at withdrawal so it’s not that great investment. Tax saving fixed deposit is also a similar investment with five years lock-in.
- No mention of insurance. Although insurance is not a investment and does not fall into MoneySights domain. But it makes sense for investor (here tax saver) to get term insurance and save tax on premium deposited. Here Indian common investor could have been educated on Term insurance and its need.
- If you put saving amount as 1.2 lakh, it does not show infra bonds investments in recommendations. (80-c max limit is 1 lakh and 20k is extra u/s 80CCF).
Above mentioned research tools are good for finding out your next investment target. But what about getting personalized correction/improvement recommendations. This is a pretty unique concept which MoneySights has come up with.
You can add stocks/mutual funds to your portfolio. Start typing in and it will suggest the full name with auto-complete options.
While adding mutual fund, you can provide SIP details too, like start date, frequency and date of execution. It even support adding missed SIP.
Good part is that it asks for investment amount and not the NAV and units. The reason is simple, people don’t buy with units at the top of their minds!
Once you provide your investment details, tool will show interesting inferences like given here. My personal favourite is the fourth one!
- Total portfolio profit/loss for all your investments till date. This will include dividend earned on stocks and mutual funds (in case of invested with dividend option). You can see both annualized return and net return for more than a year investments.
- It can find out what are strengths and weakness of your portfolio like too much dependent on a particular sector (which is sometimes risky), too many small caps etc.
- It can automatically suggest replacement for non-performing funds and stocks. And even suggests you to add more based on your risk profile.
- It also calculates your risk score based upon your portfolio investments and recommends a suitable portfolio for this score.
Using the MoneySights portfolio you can periodically review & manage your investments to reduce risk & generate better returns.
Improvement Areas: An overall-overhaul that I’m sure will come up soon!
- I earlier had my account on MoneySights but did not remember password. I tried using forget password option but password reset email never reached my inbox. So I had to create new user with an different Email ID which was frankly, painful!
- No account verification mail was sent on registration. Isn’t it almost criminal for a financial product in a web 2.0 environment?
- Added 2-3 MFs and it hanged and there was no response from server for some time.
- Entry/exit load not considered on mutual funds. But it has been mentioned in website as a known issue.
- Could not find provision to enter dividend reivestment option for mutual fund investment. I have ELSS SIPs in div-reinvest mode for obvious reasons so my portfolio in MS is misaligned with actual.
- Manually adding investments is a big pain. They should have automatically fetching of transactions from trading/investment and mutual funds accounts (like Perfios and Intuit). I know that Indians don’t like to share their credential because of the trust factor, but both manual and auto option could have been kept. Things are changing after all, aren’t they? I have been informed that they earlier had this feature but don’t know why this has been removed. Could it be a bit complex to handle at back-end?
Soon MoneySights will launch an online investment portal, where people can research and buy mutual funds. I hope they will do it soon and match shoulders with FundsIndia and FundSupermart too.
There are not many competitors in this space. Both FundsIndia and FundSupermart are purely online transaction website with a not so good UI/UX. They do no offer any research tools or does not have portfolio features. MS has come up with unique angle of investment. Investment through research and learning can be a great USP.
Lets see how MS performs in future but Remember, it’s just the beginning!
Another thing comes to my mind , if they do good, they can be a good international acquisition target too (remember Intuit bought Mint)
To end this article, I suggest you start your account with MoneySights, play around and let them know your feedback.