Morningstar Risk Rating

Definition

A type of financial rating system showing the frequency with which a fund loses money in comparison with the risk free rate of return. An average rating using this system is 1. Therefore, if the rating for a mutual fund is .75, then it will be considered to be less risky than other similar funds.

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The morningstar risk rating system was not working at all for us like it was supposed to, so we changed it up.

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The Morningstar Risk Rating was able to inform him that the relative risk of investing in Apple stock was actually quite low.

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The Morningstar Risk Rating was used in the mutual fund decision making process as we wanted to lower risk as much as possible.

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