Take Me to Your Leaders
A new research tool helps you find leading mutual funds.
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If you research mutual funds, you've probably seenMorningstar's mutual fund reports and its five-star ratingsystem. 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 criteriaare critical when making an investment decision. We'veidentified five of them." They include: a fund's totalreturn, consistent return, preservation (of capital), taxefficiency and expense. Funds are assigned scores for each of thesecriteria. The highest score a fund can receive is a Lipper Leadersorange checkmark, meaning its performance ranks in the topquintile. The second highest score is 2, representing funds scoringin the second quintile; the third best is a 3; and so on, down to5.
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