Investor Glossary-morningstar rating systemInvestor Glossary-morningstar rating systemInvestor Glossary-morningstar rating systemInvestor Glossary-morningstar rating systemInsightful stock market charts - Click here
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Morningstar Rating System

The HTML to link to this page

The Morningstar rating system evaluates mutual funds according to a statistical method of risk and returns. One to five stars are given to a fund in the Morningstar rating system: one being the worst; five, the best. The Morningstar rating system focuses on a fund's past performance, not its potential. A fund in the Morningstar rating system is given a composite rating based on its track record during a period of three, five and ten years (if applicable). Therefore, a fund must have three or more years of performance history to be included in the Morningstar rating system. Funds in the Morningstar rating system are placed into one of four main groups: domestic-stock, international-stock, taxable bond, and municipal bond. In addition, funds in the Morningstar rating system are assigned to a specific category in each group, such as large growth, diversified pacific, long-term government, and high-yield municipal. To ensure fairness, a fund in the Morningstar rating system is compared only to funds in its category. The Morningstar rating system is a product of Morningstar Inc., a firm based in Chicago.

Rate this Morningstar Rating System definition...

Learn about investing with the Investor Glossary Term of the Day

Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.

Popular Terms: average price per share, annual return, 144a, dividends payable, diluted share, 1031 exchange, APR, retained earnings, open position, 401a, 1035 exchange, irrevocable trust, labor relations, stock split, covered put, deferred revenue, liquidity ratio, LIBOR, margin rate, current ratio, per diem, implied volatility, required rate of return, minority interest, phantom income, limit order, deferred tax, cancelled check, inflation, risk management, EBITDA, class C shares, Key Rate Duration, option premium, stock market close, real GDP, ex-dividend date, balance sheet, Zero Cost Collar, quality assurance, in escrow, debt service coverage, FTSE, ex-dividend, wholly-owned subsidiary, reverse mortgage, FICO score, VIX, command economy

Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use