5 Star Funds
Morningstar Rating Methodology for Determining 5 Star Funds
In June 2002, Morningstar revised its rating methodology for determining 5 star funds and below. The universe of mutual funds was segregated into 48 categories instead of four broad asset class categories and 5 star funds are now a subset of those 48 categories. Morningstar did this to facilitate the comparison of 5 star funds against more relevant peer groups so funds would become 5 star funds when their managers added value rather than when their category performed well. Morningstar also sought to incorporate the risks of 5 star funds in the 5 star funds rating calculation so it adopted a utility function of risk measure that identifies 5 star funds based on volatility. Additionally, the risk measure of 5 star funds is more heavily weighted relative to the returns of 5 star funds in the 5 star funds rating calculation.
The 5 star funds rating is a quick way to gauge whether a fund has added value over time on a risk adjusted basis. The 5 star funds rating should only be one of many factors considered by investors when evaluating and selecting funds for investment. The 5 star funds rating is objective, based entirely on a mathematical evaluation of past performance. The 5 star funds rating is a useful tool for identifying 5 star funds worthy of further research but should not be considered buy or sell recommendations.
For more information regarding Morningstar ratings for 5 star funds, please visit http://quicktake.morningstar.com/DataDefs/CEFRatings.html.
On December 8, 2009, Advisor Perspectives published an article titled "Morningstar Ratings Fail over a Full Market Cycle." Using data for the three years ending September 30, 2009, Advisor Perspectives found that Morningstar's ratings lost virtually all of their predictive ability when measured over a full market cycle.
Fund Reports and Information
You should carefully consider the investment objectives, risks, charges and expenses of the Midas Funds by reading the prospectus carefully before investing or sending money. Consult with your tax advisor or attorney regarding specific tax issues.
Investment products, including shares of the Midas Funds, are not federally or FDIC insured, are not deposits or obligations of, or guaranteed by, any financial institution and involve investment risk, including possible loss of principal and fluctuation in value.
For investment risks associated with the Funds, please read "Principal Investment Objectives, Strategies and Risks," and "Additional Investment Risks" in the free prospectus, which contains this and other important information about the Midas Funds. You can obtain a prospectus by contacting us at 1-800-400-MIDAS (6432) or downloading it below.
The Midas Funds are managed by Midas Management Corporation, a wholly owned subsidiary of Winmill & Co. Incorporated. Winmill & Co. is engaged through subsidiaries in stock market and gold investing through its investment management of mutual funds and closed end funds.
Past Performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Each of the investment products (including the mutual funds) or services referred to in this site may be offered only to persons in the United States. This website should not be considered a solicitation or offering of any investment products or services to investors residing outside the United States. Each Fund is described in a combined prospectus that contains more complete information about each Fund, including management fees and other charges and expenses. Request a prospectus and read it carefully before you invest or send money. Please print out from this site or e-mail or call us at 1-800-400-MIDAS (6432) to obtain a free prospectus. "Midas", "Midas Funds" (design), and "The Midas Touch" registered trademarks are the property of Performance Driven Properties, Inc. Midas Securities Group, Inc., Distributor.