Is the fund rating upgrade good or bad?
Yes, because the upgrade of the fund rating means that the management level and fund performance of this fund have risen by one level. The higher the fund rating, the better the fund products and the stronger the investment level of fund managers, which can make investors gain more profit space, but it does not mean that investors must make money.
The rating and ranking of funds provide a very convenient and intuitive way for investors to understand the relative level of product performance. Fund rating results are usually expressed by star rating, and the higher the star rating means the better the product evaluation level (usually five stars is the best).
The meaning of fund rating and rating agencies:
Fund rating refers to the activities of fund evaluation institutions and their evaluators to comprehensively analyze the investment income and risk of funds or the management ability of fund managers by using specific methods, and to display the analysis results by using symbols, numbers or words with specific meanings. Fund rating agencies are independent and impartial third-party institutions, among which Morningstar, Galaxy Securities and Haitong Securities are more authoritative in China. Fund rating agencies are members of fund industry associations, and their evaluation results have high influence in the market.
Fund rating is an indicator for everyone to screen funds, but it is not the only indicator. When buying a fund, if you choose two similar funds with different ratings, it is recommended to choose the one with higher rating.
Of course, some funds have been upgraded and some have been downgraded. If you find that the rating of the fund you hold has been downgraded, you need to be vigilant, which means that the money-making effect of this fund and the money-making ability of the fund manager have been downgraded.