How to use Fund Ratings to construct a portfolio?
An optimal portfolio will not necessarily feature only four and five star funds. An investor needs to consider other factors such as risk tolerance, how the various funds in the portfolio may work together and appropriate diversification across asset classes. It may be that a particular fund, which currently has a two Star Rating, is the best choice for a portion of an investor’s portfolio. An investor should contact their investment advisor for further assistance with these types of portfolio decisions.
