The Five-Star Myth
4. The best funds to buy are those rated 4 or 5 Stars by Morningstar.
- The star system tells you which funds were good, not which ones will be good. Even Morningstar will tell you that their ratings are a measure of past (risk-adjusted) performance, not the potential for future profits. Relying on statistical ratings is no substitute for a thorough examination and analysis of what a fund is doing today.