Every Public Offering of Fund product has its own performance. How do investors know the relative quality of its performance in many similar products? 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 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. The rating results are usually expressed by star rating, and the higher the star rating, the better the product evaluation level (usually five stars is the best).

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.