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. Lipper Indexes

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

    An investment vehicle that is made up of a pool of funds collected ...
  3. Mutual Fund Yield

    Dividend payments divided by the value of a mutual fund’s shares. ...
  4. NAV Return

    The change in the net asset value of an exchange-traded fund ...
  5. Total Annual Fund Operating Expenses

    For a mutual fund or other type of fund management structure, ...
  6. Fund Supermarkets

    An investment firm or brokerage that offers investors a wide ...
Related Articles
  1. ETFs & Mutual Funds

    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.
  2. ETFs & Mutual Funds

    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.
  3. ETFs & Mutual Funds

    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.
  4. ETFs & Mutual Funds

    Mutual Fund Ratings: Are They Deceiving?

    Rating systems are a helpful - but not perfect - tool to help you find a winning fund.
  5. ETFs & Mutual Funds

    The Basics of How Mutual Funds Are Rated

    Learn how the major rating agencies assign mutual fund ratings. Understand what these ratings measure and how they are different from each other.
  6. ETFs & Mutual Funds

    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.
  7. ETFs & Mutual Funds

    How to Rate Your Mutual Fund Manager

    What to really look for when you're deciding on a mutual fund.
  8. ETFs & Mutual Funds

    A Look At Barron's Top 5 Mutual Fund Families

    These 5 mutual fund families were rated tops by Barron's. Here's why.
  9. ETFs & Mutual Funds

    A Mutual Funds Guide for Young Investors

    Learn how mutual funds work, why they are so popular and how younger investors can get started by putting mutual funds in their IRAs or 401(k)s.
  10. Financial Advisor

    The Best Free Mutual Fund Research Providers

    There is no lack of information for advisors on mutual funds. Getting the right sources (at the right price) can be as easy as a few clicks away.
RELATED FAQS
  1. Who rates mutual funds?

    Learn about companies that rate mutual funds, such as S&P Capital IQ, Morningstar and Lipper. Read about each rating agency's ... Read Answer >>
  2. How are mutual funds rated?

    Learn what the three major fund rating companies use as their criteria for issuing recommendations and warnings to prospective ... Read Answer >>
  3. How do I judge a mutual fund's performance?

    Evaluate mutual fund performance utilizing resources such as Morningstar; compare the fund with others in its peer group ... Read Answer >>
  4. How do I calculate the loan-to-value ratio using Excel?

    Learn what a mutual fund and a money market fund are, and understand the differences between each and how they serve various ... Read Answer >>
  5. Why is it that when investors realize returns on a mutual fund, its price tends to ...

    Mutual funds have been in existence since 1924, when the first open-ended mutual fund was created. Since then, the market ... Read Answer >>
  6. How do you find out the price of a mutual fund?

    The easiest way to find out the price of a mutual fund is to look at its net asset value (NAV). NAV is the total value of ... Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center