What Does Mutual Fund Ranking Really Tell You?
Many investors chase returns using mutual fund ranking, but it’s important to understand what these rankings mean. Rankings are based on past performance, risk-adjusted returns, consistency, and volatility. A top-ranked fund today may not hold that spot tomorrow if market conditions change. It’s essential to go beyond the rank—check the fund’s portfolio, expense ratio, and fund manager’s track record. Use rankings as a starting point, not the final word. Combine them with your goals, risk appetite, and time horizon for smarter investing decisions.
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