Fund ratings play a significant role in fund selection for investors: the funds being made available are more and more numerous and increasingly diversified in terms of assets and style management. Ratings are in fact a simple tool with which to evaluate and compare the respective qualities of funds with regard to their risk and return. This article provides a comparative analysis of a selection of leading rating systems that are very familiar to investors, including Standard & Poor's Star Rating, the Mornginstar Rating, and the Lipper Leader Rating.

A Critical Analysis of Fund Rating Systems