Subscribe to Entrepreneur for $5
Subscribe

Take Me to Your Leaders

A new research tool helps you find leading mutual funds.

By
This story appears in the September 2003 issue of Entrepreneur. Subscribe »

If you research mutual funds, you've probably seen Morningstar's mutual fund reports and its five-star rating system. Another research tool gaining attention is Lipper Leaders, introduced by Denver-based Lipper Inc. in 2001. And in this case, big orange checksmarks matter most.

"There is no one-size fund that fits all investors," says Jeff Tjornehoj, a Lipper research analyst. "Many criteria are critical when making an investment decision. We've identified five of them." They include: a fund's total return, consistent return, preservation (of capital), tax efficiency and expense. Funds are assigned scores for each of these criteria. The highest score a fund can receive is a Lipper Leaders orange checkmark, meaning its performance ranks in the top quintile. The second highest score is 2, representing funds scoring in the second quintile; the third best is a 3; and so on, down to 5.

Memorial Day Subscription Sale- Unlock this subscriber exclusive article and more for 20% off today.

Access all Entrepreneur content with no ads, unlock discounts, and get exclusive advice only available to our subscribers. Plus, our magazine delivered straight to your door.

Get a year subscription today for 20% off. Just use code SAVE20 at checkout.

Entrepreneur Editors' Picks