Morningstar Ratings and Mutual Fund Performance

Author: Christopher R. Blake & Matthew R. Morey

"This study examines the degree to which the well-known Morningstar rating system is a predictor of out-of-sample mutual fund performance, an important issue given that high-rated funds receive the lion’s share of investor cash inflow. We use a data set based on domestic equity mutual funds (of various ages and investment objective styles) that is free from survivorship bias and adjusted for load fees to examine the predictive qualities of the rating system. In addition, we use various performance metrics over different time horizons and sample periods."



The Journal of Financial and Quantitative Analysis Vol. 35, No. 3 (Sep., 2000), pp. 451-483
Source: https://www.jstor.org/stable/2676213

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