MUTUALdecision Launches First Mutual Fund Rating System Based On Predictive Models

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MUTUALdecision's Fund Grade system uses academic models to forecast future returns, unlike Morningstar and current methods that rely on past performance to rate funds

MUTUALdecision today announced it has launched the first mutual fund rating system based on predictive and time-tested academic models that forecast a fund's future performance - offering investors and financial advisors a superior alternative to existing methods that rate mutual funds based on their past performance.

Since launching in 2006, MUTUALdecision has become the preeminent online source for predictive mutual fund models based on the nation's leading academic research. The MUTUALdecision rating system launched today - Fund Grade - grades over 3,600 U.S. equity funds using a proprietary formula that factors results from four academic models (Return Gap, Active Share, Judging Fund Managers, Forecasting Alphas). Each model focuses on one or more unique variables that researchers found to be statistically significant in predicting fund performance, using a minimum of 20 years performance data going back to 1983.

MUTUALdecision's rating system differs from Morningstar in several key areas:

Based on predictive models            
Based on 20 years of fund data            
Formula based on 4 academic models        
Rates funds into 10 categories            

Based on historical performance model
Based on 10 years of fund data
Based on 1 model
Rates funds into 5 categories (star system)

"Every mutual fund prospectus cautions that 'past performance is not an indication of future returns,' yet this is precisely the principle investors are forced to rely upon when using today's fund rating systems," said William G. Byrnes, founder and chief executive officer at MUTUALdecision. "MUTUALdecision was founded to help mutual fund investors earn superior returns, and our Fund Grade rating system - based on predictive models thoroughly vetted and supported by leading mutual fund academics - delivers on this mission."

With Fund Grade, MUTUALdecision assigns mutual funds one of 10 letter grades, with each grade including 10% of screened funds. There is an additional letter grade of A+ assigned to a select handful of top mutual funds that rank in the highest 10% across all four academic models. Complimenting Fund Grade is Fund Finder, a screening tool that allows investors to select criteria (big cap, small cap, expense ratio, manager tenure, etc.) for viewing a fund's rating, including the ability to screen by fund grade.

The Fund Grade rating system - as well as access to results from each of the site's four models and other valuable investment tools - are available for free during a two week trial period for those who sign up, after which site visitors will be able to access all hosted academic models and site tools through a monthly ($9.95), quarterly ($23.85) or annual ($71.40) subscription.

About MUTUALdecision
Based in Arlington, Va., MUTUALdecision is the only Web site for predictive mutual fund models based on academic research. It also features mutual fund rankings, academic research, mutual fund related commentary, and tools for investors to make better mutual fund investment decisions and easily identify top mutual funds. MUTUALdecision is the first to bring leading mutual fund academic research models directly to investors and financial advisors so that they can easily identify tomorrow's best mutual funds. For additional information, please visit


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Brian Lustig
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