What Is Morningstar Risk Rating
To receive a Morningstar Rating a fund must have a record of more than three years. The Morningstar Rating is a measure of a funds risk-adjusted return relative to similar funds. Morningstar Risk Rating Definition On a scale of one to five stars a Morningstar rating measures investments based on backward-looking data. What is morningstar risk rating . The key word here is historical and as Morningstar points out a funds past performance should not be projected to persist in future time periods. A mutual fund with average risk receives a Morningstar risk rating of 1. The Morningstar risk rating is Morningstars evaluation of a mutual fund s level of risk. The Morningstar Sustainability Rating is a measure of how well the holdings in a portfolio are managing their environmental social and governance or ESG risks. For example it may compare the volatility of a bond fund to other bond funds. The Morningstar Rating for investments commonly called the star rating is a measure of