20 Investing Myths You Need to Stop Believing

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13. 5-Star Mutual Funds Are the Best Investments

Morningstar assigns mutual funds a star rating that is based upon past performance and other metrics. Five stars is the highest ranking. However, these rankings of past performance are not meant to be predictors of future performance. Morningstar’s analyst ratings do provide a forward-looking analysis of mutual funds, but never forget that past performance is no guarantee of future returns.

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