You're here:  Home --> Dictionary --> F --> Five-star

Morningstar
Equity Research
Ind. Research
Style Box

Five-star
Term category: General Investing, Funds
In 10 words or less: The highest rating given to stocks and mutual funds by Morningstar.

Definition: The highest score available in Morningstar's popular star rating system.

StockJargon Advice: Morningstar is a widely-respected independent research company and its star system is largely synonymous with the mutual fund industry.  Five-star funds are considered to be those that generate superior risk-adjusted returns.  Studies have shown that gaining a five-star ranking leads to more people investing in the fund, so mutual funds try to improve their rankings.

Morningstar also uses this system to rate more than 1,600 stocks.

Related Articles

Morningstar Rating for Funds
Here you'll find info on how Morningstar rates funds.

Morningstar Rating for Stocks
Here you'll find info on how Morningstar rates stocks.

Morningstar Style Box
Morningstar is also largely known for its style box system...

Related Books

Morningstar Guide to Mutual Funds by Christine Benz
Common Sense on Mutual Funds by John Bogle
The Five Rules for Successful Stock Investing by Pat Dorsey
Wall Street Journal Guide to Understanding Money and Investments by Kenneth M. Morris

# -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