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Finance Dictionary and Glossary of Investment Terms
Overall Rank
Definition 1.
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. Value Line calculates Overall Ranks on the basis of three critical factors: five- and one-year growth persistence in fund returns and three-year risk-adjusted performance. Growth persistence, shown individually in the Rankings box, 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 rewarded only for the consistency with which they outperform, not for the magnitude of the outperformance. The three-year risk-adjusted performance is calculated by dividing a fund''s three-year total return by its Standard Deviation. These three measures are combined into a total score, and the funds are then ranked from 1 (highest) to 5 (lowest).
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