David1961
Thinks s/he gets paid by the post
- Joined
- Jul 26, 2007
- Messages
- 1,085
I understand the concept of assigning star ratings for non-index mutual funds. But sometimes I will compare two funds with the same objective - Fund A has outperformed Fund B for both the 1 year and 5 year periods, but Fund B may have more stars. I've never understood this. Maybe there are other factors that go into the stars - like size of fund, risk/reward, etc. How much importance do you put in the Morningstar ratings when buying and selling mutual funds? For me, it is a factor, but not sure I want to make an investment decision based on the number of stars.