How does Value Line compute mutual fund ranks?
Value Line uses a dual Ranking System whereby each fund receives an Overall Rank, measuring various performance criteria taking risk into account, and a Risk rank, to show the total level of risk the fund has assumed. Overall Ranks are calculated separately for each of three broad categories: equity and partial-equity funds, taxable fixed-income funds, and municipal bond (tax-free) funds. Risk Ranks are calculated for each of two broad categories: equity and partial equity funds, and taxable and tax-exempt fixed-income funds. Value Line calculates Overall Ranks on the basis of three factors: one- and five-year persistence of relative growth in fund returns, and three-year risk-adjusted performance. Growth Persistence, shown individually in the Rankings box on the page (middle right side), is a proprietary Value Line measure that rewards funds for the consistency with which they outperform their broader universe of equity, taxable fixed income, or municipal bond funds. Funds are rewarde
