FYI: In the mid-1980s, as the number of U.S. mutual funds swelled past 1,000, it became clear that an individual investor or financial advisor could no longer perform due diligence on all the available choices. Some sort of screen or means of grading the prospects had become essential. Joe Mansueto, publisher of the newly launched Mutual Fund Sourcebook, responded to this challenge by introducing the Morningstar fund ratings ranging from 1 to 5 stars to help investors more quickly identify funds with better records.
Regards,
Ted
http://www.morningstar.com/articles/857891/the-utility-of-grades.htmlMutual Fund Wire Story:
http://www.mfwire.com/common/artprint2007.asp?storyID=57842&wireid=2
