What’s in What’s out
We have introduced two new features in Morningstar Adviser Workstation, our web-based research software for advisers which is currently being used by more than 250 advisers across India.
The first feature helps you analyse stock holding movement across the mutual fund industry. Using this tool will help you keep abreast of stock holdings of funds, actions taken by fund managers and see portfolio movement across periods.
This unique feature called "What’s in What’s out" gives you access for getting details on the equity stock movement at following levels:
1) Whole fund industry movement: "Industry Wise"
2) AMC wise movement: " AMC wise” (Select AMC option)
3) Fund level: "Fund Wise" (Select fund option)
Mukesh Dedhia of Ghalla Bhansali Securities says this feature helps him understand which stocks/sectors are in favor. “This feature helps me know the overall strategy of the mutual fund industry – which sectors they are preferring and avoiding. It helps to know the style and strategy of the fund manager which helps in better fund selection.”
Common Holding
This tool enables you to distinguish the percentage of common holdings of up to 50 funds entered/ selected at a time. In fact, you can also drill down on the details of what are the common underlying holdings too. This would be an instantaneous source of reference data to compare across peers and across periods and act as a handy tool to conduct your own custom analysis.
The tool is helping advisers eliminate funds with duplicate holdings. “It is a very useful tool. Often, clients have multiple funds in one category. When I analysed funds in the same category, there were many similar stock holdings across two funds. This helped me reduce the number of funds in clients’ portfolio and select a fund which has a lower expense ratio. Thus, I’m able to convince clients that holding too many funds is not the best option and it doesn’t necessarily help in diversification. Having said that, I found that sometimes adding a new fund in the same category is also useful if there is no common holding,” says Pune-based distributor Uddhav Tulshibagwale who has been using AWS since 2015.
Vadodara based distributor Anjal Patel says this feature has helped him acquire new clients. “I am using Morningstar Adviser Workstation platform for the past 11 months and finding it extremely useful for data analysis. It also helped me acquire HNI clients. I’m using Common Holding Statement feature to study new client’s portfolio and add value. The statement helps me explain to clients that if they are increasing the number of funds it does not add value in the portfolio.”
Write to us at IndiaSales@morningstar.com or share your details to understand how Morningstar Adviser Workstation can take your practice to the next level.
