Things You'll Need:
- Internet
- Brokerage account
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Step 1
The first thing you need to know when looking for the top rated mutual funds is to understand that you will receive different information from different sources. The best way to get comprehensive looks at mutual funds is find multiple sources of mutual fund ratings and then compare them.
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Step 2
Who is considered the leader in mutual fund ratings? In most circles Morningstar is seen as the leader in rating the best mutual funds. Morningstar ratings are constantly referred to in magazines and on financial television as the gold standard. You can find mutual fund ratings through morningstar without paying, though to receive a full writeup you will need a premium membership.
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Step 3
Standard and Poors is another source of mutual fund ratings that is well respected throughout the industry. S&P rates mutual funds as well as stocks based on their past and their future potential. S&P research is often found through your individual brokerage accounts in the mutual fund research section.
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Step 4
Another source of mutual fund rankings is Lipper Research. Lipper has a very unique way of ranking mutual fund risk and reward, which gives investors great perspectives on what they are getting into with each mutual fund.
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Step 5
These are in pencil, not ink!Remember that in the end mutual fund ratings are all subject to error and you should not simply invest in a fund because a certain site or analyst says it is the best mutual fund. Mutual fund rankings and mutual fund ratings are like anything else, they are subject to change!
Comments
jseven said
on 3/18/2009 Very good info, thanks! 5*
sunshine11219 said
on 3/18/2009 very good article
Susang6 said
on 3/17/2009 Very smart suggestions on finding mutual fund ratings. I will print off and give to my husband. Another excellent article!