How to Find Mutual Fund Ratings

Looking for the top rated mutual funds? There are many different sources to that rate mutual funds, so there are plenty of different places to look for information on which ones are the best of the best.

Things You'll Need

• Internet
• Brokerage account

Instructions

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.

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.

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.

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.

5. 

   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!

Tips & Warnings

• Find as many opinions as possible.

• Understand the investment thesis and styles of the mutual fund manager.

• Understand that when a mutual fund changes managers or strategies, these rankings may mean very little.