Fund ratings are evaluations that help investors assess the performance and risk of mutual funds or exchange-traded funds (ETFs). These ratings are typically provided by financial research firms and are based on various factors, including historical returns, volatility, and management quality. A higher rating often indicates a better track record and lower risk, making it easier for investors to make informed decisions. Investors can use fund ratings to compare different funds within the same category, such as equity funds or bond funds. However, it's important to remember that past performance does not guarantee future results, and ratings should be just one part of a comprehensive investment strategy.