How to Rank Fidelity Mutual Funds

Fidelity is a brokerage firm based out of New York. Fidelity deals with mutual funds, trading and active trading, annuities and 401(k) retirement rollovers. Fidelity is a large and well-known company with active managers for their mutual funds. Fidelity manages over 150 mutual funds. If you choose to use a brokerage firm like Fidelity, you need to know how to rank their mutual funds compared with others. There are several Web sites that will tell you how to rank Fidelity mutual funds according to their own criteria, but you should examine your own needs and base your decision on those.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• A computer with access to the Internet
• A mutual fund ranking system. You can use your own or try Morningstar and Lipper for sound fund ranking based on performance

Find Fidelity Mutual Fund Rankings

1. Visit an online ranking site like Morningstar or Lipper.

2. Find the ticker abbreviation or the name of the mutual fund in which you are interested.

3. Go to the Morningstar or Lipper Web site and click on 'funds'. Alternatively, use the search feature to find the mutual fund you want.

4. Look for the mutual fund you want within its family. In this particular case, Fidelity.

5. Select the mutual fund you're interested in and read across on the same line to find the rating.

Create Your Own Ranking for Fidelity Mutual Funds

6. Make a list of reasons you're investing and goals you hope to achieve. Arrange them from most important to least important.

7. Search the Fidelity Web site for mutual funds that match your list. You can also search Fidelity for different types of mutual funds and tips on getting started.

Tips & Warnings

• Morningstar uses a five-star system to rate mutual funds, with 5 stars being the highest rating and 1 the lowest. The mutual funds are all risk-adjusted, which means they account for the risk involved in investing in the fund.
• Lipper uses an alphabetic system to rate mutual funds, with A being the highest rating down to E, the lowest.
• Keep your tax advisor in the loop. Investing in mutual funds can have significant tax consequences. Make sure your tax planner knows about the investments you plan to make.
• Remember that past rank performance is not an indicator of future returns. Your mutual fund may have done well in the past only to tank in the future. All ratings can do is let you know how well the funds have done in the past.