In the fund industry, there is a very important rating, that is, the Morningstar rating, which can directly tell us how this fund is, whether it can be bought, how much long-term investment returns and so on. So what is the reference value of Morningstar rating to the fund? Does Morningstar rating have reference significance for buying funds? Morningstar is an American company, and its Morningstar rating is an important reference index for many individuals and institutional investors to evaluate funds, build portfolios and make investment decisions. In the general rating, Morningstar rating will classify the funds first, and then compare them to make a horizontal comparison, and then Morningstar will rate the risk fluctuation of a fund and delete it. So far, the Morningstar rating has screened out athletes with stable growth in similar funds. Morningstar rating generally considers risks first, and any fund that can't control risks well can't get high scores. In this regard, Morningstar graded funds generally have the following three points: 1 Compare the asset returns of similar funds. Only in the same asset, the risk characteristics are similar. At this time, the income difference of comparative funds is mainly related to the investment management ability of fund managers, including stock selection, timing and weight distribution. Morningstar adjusts the return of each fund by punishing the risk according to the fluctuation degree of monthly return of each fund, especially the downward fluctuation degree: the greater the fluctuation, the more the punishment. This means that funds with high risks, high returns and high volatility may not get high ratings. 3 in the same type of funds, they are ranked according to MRAR and divided into stars according to normal distribution. Generally, the former 10% is rated as five stars, and the latter 10% is rated as one star. Generally speaking, Morningstar rating can only look at the best funds in the same type, and different types of funds are not comparable. And it should be noted that it is generally the most stable, but definitely not the best.