Morningstar Training Tip for the Novice Investor


Morningstar’s analysis is loaded with financial jargon and ratings that are unique to Morningstar, which can present a challenge for the novice investor. Don’t let be intimidated by Morningstar’s research. Located within Morningstar is all the tools  you need to use the database and its extensive research.

The Help and Education tab of Morningstar Investment Research Center is full of helpful tips and guides for investors at all levels of expertise. For any financial terms that you are unfamiliar with, you can utilize the glossary on the Help and Education tab. Hundreds of terms are defined here using simple language and clear examples, ensuring that you understand how to interpret technical terms or data points. Directly below the glossary, users will find several methodology documents to provide deeper insight into Morningstar’s proprietary ratings. These documents will demonstrate how each rating was developed and how you should utilize the ratings to support your investment decisions.

For example, many mutual funds will have a Star Rating and an Analyst Rating. The Star Rating for mutual funds is a backward-looking measure based on a fund’s past risk- and load-adjusted return versus its category peers. The Analyst Rating is a summary of Morningstar’s forward-looking analysis of a fund. For folks who are focused on past performance, the Star Rating is a great indicator. However, for those who are interested in Morningstar analysts’ opinions on the long-term success of a fund, the Analyst Rating would be a more appropriate benchmark.

Read about these ratings and more by clicking on the methodology documents on the Help and Education tab.

As always, we offer monthly training webinars the first Thursday of each month at 11:00 a.m. Central Time.  We look forward to seeing you there!

Monthly Session
Training Webinar
June 7th @ 11:00am
Click here to attend
Dial 800-549-9585. Event password: mirc
Access Code: 308 167 0

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