Several risk measurements appear on Morningstar Quicktake Reports, including standard deviation, beta, Morningstar risk ratings, and Morningstar bear market rankings. An Investment Risk Primer. It is important to know what types of securities a fund's manager buys. Only then can you set realistic expectations for what the fund can do for you. Don't rely on a fund's name to tell you what it owns.
Fund managers can buy just stocks, just bonds, or a mix of the two.
They can stick with U.S. companies or venture abroad. They can hold popular big names, like Coca-Cola KO or Gillette G, or focus on small companies that most of us have never heard of. They can like high-priced companies that are growing quickly, or they can favor value stocks with lower earnings prospects but cheap prices. Finally, managers can fill their portfolios with 20 or 200 stocks. How a manager chooses to invest your money affects your return.