should I care about morningstar fund ratings?

[Goldy1]

I just noticed my fidelity freedom target retirement fund in my roth ira has only a 3 star rating in all categories.

[meaghanchan]

Probably not. There are several studies showing no predictive power to Morningstar's ratings. They aren't bad at showing what a fund did in the past relative to other funds in the same category, but they're pretty terrible at predicting how a fund will do in the future.

The Fidelity Freedom target funds are a very good choice in a retirement account, as long as they fit your desired asset allocation and risk tolerance.

[Broken Arrow]

meaghanchan beat me to it.

3 stars just means that it performed right in the average of similar funds of that type.

[jIM_Ohio]

I don't pay attention to the stars... even though most of my T Rowe funds are 4 stars for 5/10 year periods...