For some time I've used RiskGrades as one parameter in my evaluation of Mutual Funds. Now that they're going to be gone at the end of this month, I'm wondering what else to use. I'm leaning toward the "Upside Downside Capture Ratio" available on M*, but I'm not quite sure how to manipulate the data to arrive at a single number that can be used to compare one fund with another.
Any thoughts on this or other measures of risk?
Jerry
Comments
I too use the Risk Grade site in the management of my portfolio(s); and, to assist me in my review of prospective mutual funds, etc. As a matter of fact, I maintain a prospective fund list so when I have a fund that begins to falter within my portfolio ... I can quickly and easily replace the faltering fund with one that is up-to-speed, so to speak.
Currently, I know of no other site that is availabe to the small investor, like myself, that comes close to replacing it. It will indeed will be missed by me.
Perhaps your post will lead us to an alternate site.
Sorry I am no help ... but, I too am looking.
Skeeter
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What do you think about this: FundGrades (https://www.fundgrades.com/Default.aspx)
>>OVERALL METHODOLOGY: (https://www.fundgrades.com/Overall.aspx)
Grading Information: Overall Honor Roll
"There is no free lunch!
Each grading element is designed to recognize attributes that are appealing and yet also expose risks that less sophisticated systems would ignore. Maybe a fund is graded highly for risk and return, yet it received that high grade due to one lucky month (that wasn't the norm) or by making a huge gamble that happened to pay off...this time."
>>RELATIVE RISK: (https://www.fundgrades.com/RelativeRisk.aspx)
"Here is how the risk grades work. Say a fund's best fitting benchmark is Large Cap Blend (like the S&P 500). Also, assume that over some period of time the S&P 500 had a standard deviation (a measure of the volatility of returns) of 10%. If a fund's volatility matched the benchmark within 1% of the benchmark's standard deviation (i.e. 1% X 10% = 0.10% or 9.90% to 10.10%) it is graded average, or C as you would expect for a fund closely tracking the asset class return, such as an index fund for that same asset class."
>>DIVERSIFICATION: (https://www.fundgrades.com/Diversification.aspx)
"The first step in our grading methodology is to measure how closely a fund behaves like any one of over thirty different asset classes covering domestic blend, value, growth, and large, mid, small and micro cap, foreign developed, world and emerging markets, taxable government, corporate, high yield and tax exempt fixed income of varying maturities, balanced (a blend of stocks and bonds) and finally, real estate as well. "
>>ABOUT: https://www.fundgrades.com/About.aspx
"FUNDGRADES® is an independent proprietary research methodology developed by Financeware, Inc. and the staff of its SEC Registered Investment Adviser (DBA Wealthcare Capital Management). There are no affiliations with any fund providers, broker dealers or investment management firms that manage funds...only independent, objective perspectives.
Wealthcare Capital Management uses these screening criteria in providing its fiduciary services to ERISA and advisory clients and exposes the criteria and results on the FUNDGRADES® site as a free educational service. Data is provided to Financeware by Thomson/Reuters, one of the largest financial data providers in the world."
Thanks for posting the fundgrades site. It will work for fund review; but, from what I can tell, it will not score a portfolio as the Risk Grade site will. I did book mark it for future reference and review.
Thanks again,
Skeeter
PS. I typed HSGFX. I get n/a's across the board! I mean the one fund I buy to manage risk, it will not grade ?!?!?!
I'm sorry, but I find this website TOO complicated to be useful. I don't need to see a "D" to know a fund has performed badly. In other words I find this website quite useless. To each his own.
I completely agree.
I tried PRPFX and FPACX - 2 solid funds.
That site completely blows. Won't be back to fundgrades.com