How not to buy a mutual fund

Why don’t we rate mutual funds like they were movies?

We could award five stars to the best movies and one star for the worst.

Or watch only movies produced with the lowest costs – cheaper is always better, right?

 Some articles in the Globe & Mail and other business papers seem to imply that the cheaper investments combined with star ratings (coincidentally, the paper’s own star ratings) is a guaranteed road to riches.

I have some bad news for you. It is just not that simple. There are a number of mutual fund rating companies or services that award stars or rankings to mutual funds. However, star ratings have fallen into some disrepute according to the following article. Plus, their own independent movie reviewers, ahem, fund reviewers may not necessarily agree with their own star system.

Source: http://fiduciarynews.com/2013/01/have-mutual-fund-rating-agencies-lost-their-mojo/