I came into contact with this website and got it from reading. From the first contact to the present, it must be in my browser favorites, which has provided me with great help on the road of fund investment.
Morningstar is a subsidiary of American Morningstar Company in China. Internationally, Morningstar Company is a world-famous securities appraisal company. In China, Morningstar only involves fund business. Although people have been criticizing the morning star, I still love it.
The domestic Morningstar network is mainly for the majority of retail investors. The idea is that "individual investors should understand the process and principles of investment, and consider the investment strategy and behavior in the portfolio, because whether or not they can achieve the financial management goal suitable for their personal situation and requirements is the only criterion to measure whether or not to invest." I was deeply attracted when I saw this sentence, because it coincided with my expectation.
In terms of fund selection, Morningstar has many functions and categories. I am personally used to fund rating, fund list and investment style box.
There are many websites related to fund rating in China, each with its own characteristics. There are no absolute advantages or disadvantages here. At the beginning of each month, Morningstar will release a rating report, ranking the fund from one to five stars, with five stars as the highest level. Funds established less than one year do not participate in the rating, and the rating standard is sorted according to the comprehensive performance of funds, so this rating is not an absolute standard, but relative, which means that all participating funds will be rated according to their own level within a fixed proportion. The fund we choose is naturally a priority five-star fund.
The second is the list of funds, in which we can choose different types of funds or different fund companies. This list is equivalent to a summary of comprehensive achievements, including expenses, performance, risks and so on.
The most noteworthy is the style investment box. Morningstar classifies funds from two dimensions: scale and style, which are divided into large-cap, medium-cap and small-cap. Style can be divided into value, balance and growth. In this way, all the funds are framed into a 3X3 matrix. The large-cap value-based funds have the least risk and the least return, while the small-cap growth funds has the greatest risk and the greatest return.
By making good use of these three sectors, you can basically brush out your ideal funds.