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Lipper Leader Rating System

Lipper Leader Rating System
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First Published: Mon, Dec 03 2007. 12 09 AM IST
Updated: Mon, Dec 03 2007. 12 09 AM IST
Lipper Inc., a mutual fund research firm and subsidiary of Reuters Plc., has announced the launch of Lipper Leader Rating System, which helps investors and their advisers select funds that fit individual investment goals in terms of consistent return or preservation of capital. The new rating system is based on a numeric scale tiered in ascending order where ‘1’ is the lowest scored funds (bottom 20%), and ‘5’ represents the highest scored funds (top 20%). The scores are both quantitative and historical and are based on a mathematical framework.
In addition, all ratings cover three time periods (three, five and 10 years) plus an overall average of these periods. The Lipper Leader Rating System in India is classified under Total Return, Consistent Return and Preservation.
Funds rated Lipper Leaders for Consistent Return have demonstrated superior consistency and risk-adjusted returns relative to other funds in the same Lipper classification. Funds rated Lipper Leaders for Total Return have superior pure performance relative to their competition and Lipper Leaders for Preservation have preserved capital better than other funds within a broad asset class (equity, mixed equity or fixed income funds).
Lipper also has staff in India who cover data, sales and research. You can access the Lipper Leader Rating scores on www.lipperweb.com/research/screener.asp . To access scores for funds in India, you would need to choose ‘Registered for Sale country’ as India on the screener.
You can also choose the various applicable ‘Lipper Global Classifications.’ For example. if you wish to see scores of Indian equity funds, then choose the Lipper Global Classifications as ‘Equity India.’
“The potholes on the investment road seem deeper than ever and, for the first time, the Lipper Leaders programme truly puts investors behind the steering wheel where they can see the clearest route,” says Kenneth Koh, head of Research for Asia, excluding Japan. “No fund evaluation tool can help investors avoid risk, but Lipper Leaders can help pair them with funds that are suitable to their needs, goals, and fears.
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First Published: Mon, Dec 03 2007. 12 09 AM IST