There are a plethora of free mutual fund screeners are available on the Internet. But which one is able to incorporate ease of use and also be able to screen winning funds? For investors that want the best of both worlds the answer could be Morningstar. Below are the reasons why.
How Mutual Fund Types can Increase Profits
The first feature that will increase profitability for fund selection is the Morningstar Category selection. This allows a selection from a wide range of investment strategies and business sectors. By examining which industries are performing best, a person can be judicious with the glut of available funds.
First, one needs to examine the industry rankings which can be found for free at Prophet.net. Carefully examine which industries are on the rise and at the top of their game. Then return to the Morningstar Category to select the sectors that are rising to the top of the investment heap. Matching the top performing sectors with the appropriate Morningstar Category will greatly increase the funds chance of success.
Funds with High Rating and Low Risk?
Most investors need to balance the level of acceptable risk with the desired rate of return. Most often the high yielding investments also come with big warning symbols. It is an investors dream to find that high reward, low risk investment vehicle. While this may seem like a fantasy, Morningstar helps turn it into a reality with the ability to select both the Morningstar rating and desired level of risk.
Surprisingly, there are hundreds of five star rated funds that are termed low risk. This type of investment is particularly desirable in the troubled economy.
Funds with Performance
No matter how well a fund is rated, people will treat it like the bubonic plague unless it can grow in value. Morningstar makes fund screening based on past performance simple and effective. In the Returns category, one merely needs to select the historical time frame and the level of profitability during that period, and then hit the show results button. Only mutual funds that exceed the parameters will show up.
Some are no doubt curious how many five star rated stocks exist with moderately low risk and over 25% growth during the previous year. As of October 26th, 2009, having just emerged from a recession, the answer to that question is 144. With ease of use and powerful features, it is easy to see why the Morningstar mutual fund screener is a top choice for investors.
References
http://screen.morningstar.com/FundSelector.html
http://www.prophet.net/explore/sectorrankings.jsp
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