Savings and Investments

Mutual Funds

What is a turnover rate?

This is a measurement of the fund’s trading activity, what percentage of the total portfolio is traded each period. Low turnover rates suggest that the portfolio is holding onto assets, expecting higher returns, whereas a higher turnover means that the fund is trading very actively, trying also to realize positive returns, minimize losses, or manage the inflow and outflow of cash into the fund effectively.



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