What is a Morningstar category?
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Lucas Lee
Works at the International Organization for Migration, Lives in Geneva, Switzerland.
Morningstar categories are classifications used by the investment research firm Morningstar to group mutual funds and exchange-traded funds (ETFs) based on their investment strategies and the types of securities they hold. These categories help investors compare funds that have similar investment objectives and risk profiles. Morningstar's categories are broad and include various subcategories to further refine the classification.
For example, the "Domestic Stock" category includes funds that primarily invest in the stocks of companies located in the same country as the fund's base currency. Within this category, there are subcategories like "Large Blend," "Mid-Cap Growth," and "Small Value," which distinguish funds based on the size of the companies they invest in and their investment style.
For example, the "Domestic Stock" category includes funds that primarily invest in the stocks of companies located in the same country as the fund's base currency. Within this category, there are subcategories like "Large Blend," "Mid-Cap Growth," and "Small Value," which distinguish funds based on the size of the companies they invest in and their investment style.
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Works at the International Fund for Agricultural Development, Lives in Rome, Italy.
While the investment objective stated in a fund's prospectus may or may not reflect how the fund actually invests, the Morningstar category is assigned based on the underlying securities in each portfolio. Morningstar categories help investors and investment professionals make meaningful comparisons between funds.
2023-04-09 10:53:17
Ethan Henderson
QuesHub.com delivers expert answers and knowledge to you.
While the investment objective stated in a fund's prospectus may or may not reflect how the fund actually invests, the Morningstar category is assigned based on the underlying securities in each portfolio. Morningstar categories help investors and investment professionals make meaningful comparisons between funds.
