GuruFocus Updates 10 July 2010 Featured No Comment

By Dr. Paul Price.
Most people search out mutual funds either through independent research or by recommendations from financial advisors. Morningstar is one of the prime sources for historical data on fund category, portfolio holdings, historical performance figures and perhaps most importantly - an easy to see, all-encompassing rating of from 1 - 5 Stars.

Those who do their own due diligence often don’t bother with the grudge work of truly sifting through the detailed reports but simply gravitate to the 4 and 5 star rated funds. Financial advisors who influence clients are generally loathe to recommend any fund that is not highly rated for fear of being embarrassed should the future performance not live up to their projections. If a top-ranked fund fails to deliver you are protected by the fact that Morningstar ‘liked it’ at the time of purchase. Read more » »