Lipper Leader

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.

BREAKING DOWN '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. Benchmark

    A standard against which the performance of a security, mutual ...
  2. Index

    A statistical measure of change in an economy or a securities ...
  3. Lipper Indexes

    A series of indexes that tracks the financial performance of ...
  4. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected ...
  5. Dow Jones Industrial Average - ...

    The Dow Jones Industrial Average is a price-weighted average ...
  6. Social Responsibility

    The idea that companies should embrace its social responsibilities ...
Related Articles
  1. 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.
  2. Mutual Funds & ETFs

    Don’t Be Fooled Looking at Only Mutual Fund Rankings (MORN)

    Examine the pitfalls of investing in mutual funds based solely on each fund's ranking from major sources such as Morningstar or Lipper.
  3. Mutual Funds & ETFs

    Understanding Lipper Ratings in Mutual Funds

    Take a closer look at the Lipper rating system for mutual funds and exchange-traded funds (ETFs), how investors should interpret it, and some possible criticisms.
  4. Mutual Funds & ETFs

    Analyzing Mutual Funds: Lipper Rating Vs. Morningstar

    Read a comparison between the Morningstar and Lipper mutual fund rating systems and why it's important for investors to understand them.
  5. Investing Basics

    The Lipper Rating System Explained

    Take a closer look at how Lipper Inc., a subsidiary of Thomson Reuters, determines the ratings for mutual funds in its Lipper Rating System.
  6. Bonds & Fixed Income

    Is Your Portfolio Beating Its Benchmark?

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

    Giants of Finance: Charles Dow

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

    Long-Term Investing: Hot Or Not?

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

    The Hidden Differences Between Index Funds

    These funds don't all match index returns. Find out how to avoid costly surprises.
  10. 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.
RELATED FAQS
  1. Are target-date retirement funds good investments?

    The main benefit of target-date retirement funds is convenience. If you really don't want to bother with your retirement ... Read Full Answer >>
  2. Do mutual funds require a demat account?

    A dematerialized account enables electronic transfer of funds. The account is used so an investor does not need to hold the ... Read Full Answer >>
  3. How liquid are Vanguard mutual funds?

    The Vanguard mutual fund family is one of the largest and most well-recognized fund family in the financial industry. Its ... Read Full Answer >>
  4. Which mutual funds made money in 2008?

    Out of the 2,800 mutual funds that Morningstar, Inc., the leading provider of independent investment research in North America, ... Read Full Answer >>
  5. Does OptionsHouse have mutual funds?

    OptionsHouse has access to some mutual funds, but it depends on the fund in which the investor is looking to buy shares. ... Read Full Answer >>
  6. Should mutual funds be subject to more regulation?

    Mutual funds, when compared to other types of pooled investments such as hedge funds, have very strict regulations. In fact, ... Read Full Answer >>
Hot Definitions
  1. Presidential Election Cycle (Theory)

    A theory developed by Yale Hirsch that states that U.S. stock markets are weakest in the year following the election of a ...
  2. Super Bowl Indicator

    An indicator based on the belief that a Super Bowl win for a team from the old AFL (AFC division) foretells a decline in ...
  3. Flight To Quality

    The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This ...
  4. Discouraged Worker

    A person who is eligible for employment and is able to work, but is currently unemployed and has not attempted to find employment ...
  5. Ponzimonium

    After Bernard Madoff's $65 billion Ponzi scheme was revealed, many new (smaller-scale) Ponzi schemers became exposed. Ponzimonium ...
  6. Quarterly Earnings Report

    A quarterly filing made by public companies to report their performance. Included in earnings reports are items such as net ...
Trading Center