investing guide

Morningstar Ratings

Morningstar is an independent company that has been evaluating mutual funds for over 20 years. Considering there are well over 10,000 mutual funds to look through; services like these can be helpful in narrowing down your selections.

Mutual funds are given Morningstar ratings based on the 5-star system listed below:

- Five Stars: the fund produces substantially above-average returns.

- Four Stars: the fund produces above-average returns.

- Three Stars: the fund produces average returns.

- Two Stars: the fund produces below-average returns.

- One Star: the fund produces substantially below-average returns.

Of course please remember these ratings do not guarantee a funds performance. Resources like these should be used to narrow your choices down, but in the end the decision is still your responsibility.