Morningstar rating system

Morningstar rating system

A system used in rating mutual funds and annuity by Morningstar Incorporated of Chicago.

Morningstar Rating System

A system used to measure a mutual fund's risk compared to other similar mutual funds. For example, the Morningstar rating system may compare the volatility of a bond fund to that of other bond funds. According to the system, average risk equates to a rating of 1, with riskier funds receiving higher ratings.