Lipper Leader

AAA

DEFINITION of 'Lipper Leader'

A rating system that ranks a mutual fund's success based on whether the fund has met certain goals. Mutual funds are ranked based on total return, consistent return, preservation, tax efficiency or expenses. The top 20% of funds receive the highest ratings and are named Lipper Leaders, based on the Thomson Reuters mutual fund company of the same name (Lipper). Asset managers, fund companies and financial intermediaries recognize Lipper's benchmarking and classifications as an industry standard.

INVESTOPEDIA EXPLAINS 'Lipper Leader'

A fund that has received a Lipper rating for total return has proven to return income from dividends, interest and capital appreciation. A rating for expense identifies low cost funds. Consistent return ratings are funds that provide constant returns that are risk-adjusted. A Lipper rating for preservation is for funds that demonstrate a high ability to preserve capital as compared with other funds within the same asset class.

RELATED TERMS
  1. Index

    A statistical measure of change in an economy or a securities ...
  2. Dow Jones Industrial Average - ...

    The Dow Jones Industrial Average is a price-weighted average ...
  3. Benchmark

    A standard against which the performance of a security, mutual ...
  4. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected ...
  5. Lipper Indexes

    A series of indexes that tracks the financial performance of ...
  6. Mobile First Strategy

    Mobile first strategy is trend in website development where designing ...
Related Articles
  1. Bonds & Fixed Income

    Is Your Portfolio Beating Its Benchmark?

    Compare portfolio manager performance using the information ratio.
  2. Active Trading Fundamentals

    Giants of Finance: Charles Dow

    Find out how this financial visionary helped everyday people enter the world of finance.
  3. Investing Basics

    Long-Term Investing: Hot Or Not?

    Forget the latest craze - you're more likely to succeed with a buy-and-hold strategy.
  4. Mutual Funds & ETFs

    The Hidden Differences Between Index Funds

    These funds don't all match index returns. Find out how to avoid costly surprises.
  5. Mutual Funds & ETFs

    Benchmark Your Returns With Indexes

    If your portfolio is always falling short, you may not be making an apples-to-apples comparison.
  6. Mutual Funds & ETFs

    Which Mutual Fund Style Index Is For You?

    The Russell Investments and MSCI Barra style classification systems can help you pick the right mutual fund - if you know how they work.
  7. Active Trading

    The Fed Model And Stock Valuation: What It Does And Does Not Tell Us

    Learn about this popular stock market valuation model and how accurate it has been over the years.
  8. Investing

    Wizards Of Odd: A Trip To Tech Land

    I spent a couple of days in Silicon Valley, and here are some key lessons I learned after meeting with a number of tech CEOs and venture capitalist.
  9. Mutual Funds & ETFs

    How To Apply Technical Indicators To Mutual Funds

    Mutual funds do not readily lend themselves to technical analysis, but investors can use common indicators to evaluate mutual funds as easily as stocks.
  10. Professionals

    Should Investors Nix Actively Managed Funds?

    Index fund returns are on a tear but does this mean investors should nix actively managed funds?

You May Also Like

Hot Definitions
  1. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  2. Asset Class

    A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same ...
  3. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  4. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  5. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  6. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
Trading Center