New Morningstar Fund Ratings Grow Under the Radar

Post on June 25, 2012


Morningstar has used a 1- to 5-star scale to rate funds for more than two decades. The ratings are based on past returns and the degree of investment risk a fund took to achieve those results. Lipper, Standard & Poor’s and others also rate funds, but Morningstar’s judgments are the most influential.Research firm Corporate Insight found that more than three-quarters of fund companies display Morningstar’s star ratings on their websites.


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