Multi-Factor Investment Fund Rating Scoring System And Method

摘要

A system of and method for generating investment fund rating scores using a number of factors including criteria related to risk factors, performance, and qualitative factors. Historical weighting is provided to minimize the effect of short-term fluctuations, and the various factors are also weighted to establish the relative contributions of each of the evaluated factors. The ratings can be used to select, evaluate, and monitor mutual funds.

主权项

1. A system for generating relative ratings of mutual funds, comprising:
a computer readable investment information database configured to store information including historical performance information for a large plurality of mutual funds of at least two different investment categories; a rating scoring system processor coupled to the investment information database, with the rating scoring system processor configured to:
for each mutual fund to be rated, determine whether historical performance information for at least one of at least two different time periods exists;for each mutual fund to be rated having historical performance information for at least one time period, determining, based upon the historical performance information, a relative ranking of the mutual fund to be rated with other mutual funds that are in the same investment category as the mutual fund to be rated for each of a plurality of factors; wherein the plurality of factors includes a performance factor, at least one risk factor, and at least one qualitative factor; and wherein if the mutual fund to be rated has historical performance information for multiple time periods, a separate ranking is determined for at least some of the plurality of factors for each of the multiple time periods;
for each of the plurality of factors for each mutual fund to be rated that has separate rankings for each of multiple time periods, applying a time-based weighting to the separate rankings for such factors and combining the weighted separate rankings for each of such factors into a single ranking for each such factor; andfor each mutual fund to be rated, applying a factor weighting to the rankings for each of the plurality of factors and combining the weighted plurality of factors into a single rating of the mutual fund being rated.