Portfolio Turnover

A measure of how much buying and selling the fund is doing.

This figure is computed by taking the lesser of purchases or sales (excluding all securities with maturities of less than one year) and dividing by average monthly assets. A turnover ratio of 100% or more does not necessarily suggest that all securities in the portfolio have been traded. In practical terms, the resulting percentage loosely represents the percentage of the portfolio's holdings that have changed over the past year.

Other things being equal, a lower turnover rate is preferable to a higher one. High portfolio turnover can mean high expenses associated with all that trading, as well as higher capital gains distributions. High turnover can also mean a high level of speculation and a short-term orientation on the part of fund management.



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