How To Find a Mutual Fund Rating

There are about 6,000 mutual funds to choose from, but there are only a few giants like T. Rowe Price (TROW), Fidelity, and Vanguard known to many. What most people do not know is that a number of outstanding funds are actually handled by smaller investment management firms. This is where Mutual Fund Ratings are important.

As an investor, you need to know where to best invest your money. There are various sources where you can find mutual fund ratings that you can use to compare information. You can make use of the following tips:

1.    Take note that you will find different information depending on the source that rates the mutual funds.

2.    Look for several sources of mutual fund ratings to be able to take a comprehensive look and fairly compare information gathered.

3.    Here are some of the reliable sources of mutual fund ratings proven to be industry leaders:   

  • Morningstar Inc., is a financial publisher based in Chicago that has developed a five star rating system used for mutual funds. The ratings they publish are based on computations combining each fund’s risk and performance record.
Morningstar is a well-known leader in mutual funds ratings. Their ratings are often used as a reference source in media. Morningstar provides mutual fund ratings for free but requires premium membership for a full write-up.
  • Standard&Poor’s provides qualitative assessments for more than 1,600 funds managed globally. The funds analyzed by the company include fixed income funds, conventional equity funds, and balanced funds, long/short strategies, more complex funds using derivatives, and funds-of-hedge-funds. S&P also specializes in specialist funds like climate change, infrastructure, newly-launched funds and Shariah.
Standard & Poor’s report covers key findings and other important information about the covered fund. Funds are systematically monitored to keep the ratings updated.

Standard and Poor’s Mutual Fund Ratings include mutual funds and stocks rated based on their past record and future potential. Standard and Poor’s research can be sourced from your individual brokerage accounts. Their report provides an insight into the world’s investment funds and examines the processes, people, and the research team behind the fund.

  • Lipper Research is a Thomson Reuters company that provides reliable mutual fund ratings. Their reports provide individual investors, media and advisors a wide perspective about mutual funds with the information, commentary and analytical tools needed by investors to make well-informed investment decisions.
Lipper's classifications and benchmarking are recognized by fund companies, asset managers, and financial intermediaries, as the industry standard.
  • The U.S. News Mutual Fund Score provides a broad perspective of mutual fund ratings based on expert fund opinion. Investing analysis is conducted making use of fund ratings provided by Morningstar, Zacks, Lipper, Standard & Poor's, and The expert opinions of analysts together with various sources that rates funds in different ways, for around 4,500 mutual funds are consolidated to give a single rating in a one-of-a-kind site to monitor your mutual funds.
The U.S. News Mutual Fund Score provided looks into the fund's track record and predictions of where the funds are headed. The company has also profiled 100 or more of the larger mutual funds including assets, quotations from analysts, fund managers, newsletter writers and critical fund-level data investors.

Use the mutual fund ratings to find the right investment. A well-informed investment decision can only be made if you use insightful, accurate, and timely fund data and analysis. Keep in mind that mutual fund ratings may have errors and should not be the sole basis to invest your well earned earnings.


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