Morningstar Rating compares fund performance with the performance of other funds of the same category. A Morningstar Rating is calculated for periods of three, five and ten years. A fund that has existed for ten years will thus be given three different ratings. The overall rating of a fund is a weighted average of the three. The ten-year rating accounts for 50 per cent of the overall rating, the five- and three-year ratings for 30 and 20 per cent, respectively.
Morningstar Rating is based on historical returns. Please note that past performance should not be seen as an indication of future performance.
The number of stars
Every fund is granted stars for the relevant category and time period:
|The number of stars||Category|
|5 stars||Top 10% of the Morningstar Category™|
|4 stars||Next 22.5% of the Morningstar Category™|
|3 stars||Middle 35% of the Morningstar Category™|
|2 stars||Next 22.5% of the Morningstar Category™|
|1 star||Bottom 10% of the Morningstar Category™|
Ratings are calculated every month and fluctuate according to the relative performance of the funds.
Not all funds get a rating
For a fund to get a rating, it must meet a number of conditions. This means that certain funds are not rated by Morningstar. Those funds are, for example:
- Funds younger than three years
- Funds about which the available details are insufficient
- Funds for which there are too few comparable funds
- Funds whose investment strategy or portfolio mix has changed so much that past performance is no longer relevant