Investors love ranking lists. To some, it is the most objective path to take in selecting the right mutual funds to invest in. Many financial surveyors like Morningstar and Business Week come up with its lists of top mutual funds every year. Usually, there is a criterion that has to be met. First, ranking systems assign points to the best mutual funds with no load charges. Secondly, they look for mutual funds that require only a small initial investment.

The best mutual funds also have consistent returns with no significant lows throughout a ten year period (five is not enough to judge in some circles.) In addition, the top mutual funds have the same fund manager running the operation from year to year without sacrificing assets. The investment team behind the manager is also scrutinized as well. Sometimes, mutual fund managers have made names for themselves in the industry and are trusted by many. Morgan Stanley’s venture into India as the first domestic mutual fund manager is one primary example, and his investment firms are all over the globe as a result.

Top ten mutual fund rankings on investment review sites are usually divided into type of mutual fund. Small company mutual funds usually aren’t paired up with large companies for comparison. A mutual fund company with shares that help finance reconstruction projects in capital cities is not going to be ranked against anything smaller. All in all, all of the best mutual funds have common denominators that place them in the position they’re in.