The most reliable way to establish or compare the performance of any investment is to have a look at how it is rated in the stock market or even in the local dailies. Mutual fund ratings are especially easy to look at and understand. The rating goes a long way in helping an investor determine whether any type of investment he intends to take up is worth as a long or short-term investment.
Mutual fund rating is done through a number of systems, which have all proved to be useful and very reliable. The most commonly used rating system is by the Morningstar.
Mutual fund rating helps an investor to make comparisons on the different categories that there are under these investments. A number of web sites on the Internet will help you find these ratings, they could be from morningstar or other rating systems.
There are many methods and systems that are used for the ratings, Morningstar system being the most common. Another one is the Lipper Rating System which provides mutual reviews and analysis of data for easier consumer consumption.
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