Unlike other ratings, the Mutual Fund Rank in Advisor Tools is predictive, focused on forecasting future price performance and the likely future success of the fund. Its design is the same as our proven Zacks Rank for stocks: Each fund is ranked on a scale from #1 (Strong Buy) to #5 (Strong Sell).
If you select funds in a fiduciary capacity, the Zacks Mutual Fund Rank is essential to your process—because it offers a proven method to evaluate, select and track funds with a higher probability of outperforming relative to similar funds in a given Morningstar category.
The Mutual Fund Rank Sub-Factor Analysis in Advisor Tools lets you get granular with your research, by scoring underlying factors to provide more insight into the drivers of fund performance. For instance, factors for US Equity mutual funds include Short-Term Alpha and Long-Term Stock Selection, while Fixed Income fund factors include Risk and Consistency of Returns. Sub-Factor Analysis uses the same #1 to #5 ranking scheme as the Mutual Fund Rank.
Watch this brief video to learn the basics of a highly effective process using the Zacks Mutual Fund Rank to flag underperforming funds, then identify more potentially productive funds in the same category to replace them.
In addition to the Mutual Fund Rank and Sub-Factor Analysis, the web-based Advisor Tools platform offers:
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