A number of research firms rate or rank mutual
funds and provide that analysis to the financial press or directly
to consumers.
Ratings are based on how well a fund meets a set of criteria
Ranking is the relative standing of a fund when compared to mutual funds in general or to mutual funds with similar investment objectives
Ratings and rankings, while they don't
tell you everything you need to know about a fund, can be a useful
first step in identifying funds that may be worth considering.
In addition, the same companies and independent analysts that rate
or rank funds also provide in-depth analyses of the funds they
cover. That information is available for a fee on their Web sites,
through financial advisers, and in public libraries. It's
also reported widely in the financial press.
