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Mutual Funds

The Basics

What is a “turnover rate”?

A portfolio’s turnover rate is a measurement of a fund’s trading activity, describing what percentage of the total portfolio is traded each period. Low turnover rates suggest the portfolio is holding on to assets, expecting higher returns. High turnover rates mean the fund is trading very actively, trying to realize positive returns, minimize losses, or manage the inflow and outflow of cash into the fund effectively, and over shorter periods of time.



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