We’ve talked about the different types of mutual funds. Historical performance shows that it doesn’t matter what type of mutual fund an investor holds, one cannot consistently outperform the market. Now we’ll look at the best ranked mutual funds and managers, regardless of the fund type. Morningstar So what about Morningstar? One of the most common ways for individual investors to select mutual funds is by their Morningstar rating. Christopher B. Philips and Francis M Kinniry

Image Source In the world of investing, people are always in search of managers who will deliver alpha, or returns above the appropriate risk-adjusted benchmark. This search revolves around two competing theories. Are markets efficient or inefficient? If markets are inefficient, skilled investors can find pricing errors and consistently beat the market. Through stock selection and market timing, they perform the art of active trading to beat the market. The competing theory i