Lipper Indexes


DEFINITION of 'Lipper Indexes'

A series of indexes that tracks the financial performance of different types of mutual funds. Lipper, which is owned by Reuters, allows investors to benchmark the performance of a mutual fund investment against an index of 30 funds that also belong in that investment category.

BREAKING DOWN 'Lipper Indexes'

Lipper creates indexes for each major investment style, such as small- or large-cap funds, value funds and growth funds. Much like the S&P 500 allows stock investors to compare their returns to a market benchmark, a Lipper index aggregates the 30 biggest funds of a given investment style.

For example, an investor could compare the performance of a small-cap mutual fund against the Lipper Small-Cap Index, which would combine the 30 biggest small-cap funds, based on asset size.

  1. Benchmark

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

    A rating system that ranks a mutual fund's success based on whether ...
  3. Index

    A statistical measure of change in an economy or a securities ...
  4. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected ...
  5. Net Asset Value - NAV

    A mutual fund's price per share or exchange-traded fund's (ETF) ...
  6. Dow Jones Industrial Average - ...

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