Fund Category
What is it? A label based on a funds investment strategy and holdings. The Chicago fund research firm, Morningstar Inc., divides funds into 44 different categories, such as Large Value, Mid-Cap Growth, and World Stock. Morningstar examines portfolio statistics and composition for three years before assigning a fund to a category. It routinely reviews category assignments and will change a funds category if there is a significant change in the funds investment style. Categories help investors look beyond confusing fund names to determine whether a fund is an appropriate investment. Categories also allow investors to easily compare the performance of similar funds.Added By: Bryce
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