How does one make the right choice? There is no one rule. It is best to follow the time-tested rules of investing ("The Golden Rules of Stock Investing", MONEY TODAY, November 2, 2006).

There is another way: follow in the footsteps of equity mutual funds, which make a living, buying and selling stocks.

What if the outcome of the research by fund houses was made available to you and you could simply replicate their actions?

That's exactly what MONEY TODAY set out to do with Value Research, one of India's best-known mutual funds tracker. Knowing which stocks fund managers are buying is easier now than it was in the past. But most lay investors find it tough to access such information.

The following pages have a detailed yet simple analysis of the 40 most favoured stocks and the most indemandsectors. However, following fund actions is no excuse for neglectingyour own due diligence.

You could take the universe of 40 stocks - there are over 6,000 listed companies in India - to narrow down your choices. After that, the old rule of caveat emptor comes into play. We promise to come back with an update of fund-buying patterns at least once every quarter. Happy cherry picking!