A Lipper Leader is a mutual fund that ranks within the top 20% of its category for total return over the past five years. The Lipper Leaders designation is given to funds that have consistently outperformed their peers over time, and is a coveted accolade in the mutual fund industry.
Lipper Leaders are selected based on a number of factors, including:
- Consistent performance: The fund must have outperformed its peers in at least three of the past five years.
- Risk-adjusted returns: The fund's risk-adjusted returns must be in the top 20% of its category.
- Downside protection: The fund must have shown downside protection in at least three of the past five years.
- Expense ratio: The fund's expense ratio must be in the bottom 50% of its category.
Lipper Leaders are typically actively-managed funds, and tend to be on the higher end of the expense ratio spectrum. However, they offer investors the potential for above-average returns and downside protection in a variety of market conditions.
What is Lipper data?
Lipper is a global leader in providing data and analytical tools to the investment management industry.
Lipper's data and analytics enable clients to make better informed decisions about where to invest their money.
Lipper's products and services include:
- A comprehensive database of over 10,000 investment funds
- A suite of analytical tools to help clients understand and compare investment funds
- A range of publications, including the flagship Lipper Leaders ratings
- Customized research and consulting services
What is the Lipper Balanced fund Index?
The Lipper Balanced Index is a fund performance benchmark that consists of a portfolio of stocks and bonds. The index is rebalanced monthly and is published by Lipper, a financial research company.
The index is designed to represent the performance of balanced mutual funds, which are funds that invest in both stocks and bonds. The index is composed of two sub-indices: the Lipper Equity Balanced Index and the Lipper Fixed Income Balanced Index.
The Lipper Equity Balanced Index consists of large-cap stocks, small-cap stocks, and international stocks. The Lipper Fixed Income Balanced Index consists of government bonds, corporate bonds, and mortgage-backed securities. How does ETF price change? When you buy or sell an ETF, you are buying or selling shares of a fund that owns a basket of assets, such as stocks, bonds, or commodities. The price of an ETF is based on the value of the underlying assets, minus the fund's expenses. The value of the underlying assets will go up or down during the day, and so will the ETF's price.
Which mutual fund has highest return?
The answer to this question depends on a number of factors, including the specific mutual fund in question, the time frame over which it is measured, and the market conditions during that time frame. That said, there are a few general trends that can be observed.
In general, actively-managed mutual funds have tended to underperform index funds over the long term. This is due to a number of factors, including the fact that actively-managed funds incur higher expenses (due to the need to pay for a team of managers) and often make sub-optimal investment decisions.
Over the past 10 years, the Vanguard 500 Index Fund (VFINX) has outperformed 83% of large-cap mutual funds, while the Vanguard Total Stock Market Index Fund (VTSAX) has outperformed 89% of all mutual funds.
In terms of specific mutual funds, the Fidelity Contrafund (FCNTX) has outperformed the S&P 500 Index in 9 out of the past 10 years, while the Vanguard Wellington Fund (VWELX) has outperformed the S&P 500 in 8 out of the past 10 years.
What is Lipper Percentile?
The Lipper Percentile is a ranking system that mutual fund companies use to compare the performance of their funds against other similar funds. The Lipper Percentile is based on a fund's total return, which is the return of the fund minus the return of the benchmark index. The percentile is calculated by dividing the total return of the fund by the total return of the benchmark index.