Investment Fund Turnover: Good or Bad?

Investment Fund Turnover: Good or Bad?
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Anne Johnson
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There are many types of turnover. In business, there are accounts receivable, inventory, and employee turnover. But there’s also investment turnover.

Investment turnover measures the percentage of an investment portfolio sold in a specific period. But what is an acceptable turnover ratio, and why is it important? Is a high turnover ratio better than a low one, or does it cost more? Knowing how to calculate a turnover ratio is invaluable.

Knowing the Portfolio’s Turnover Ratio

In investing, the turnover ratio is the percentage of mutual funds or other portfolio holdings that have been replaced yearly.
Anne Johnson
Anne Johnson
Author
Anne Johnson was a commercial property & casualty insurance agent for nine years. She was also licensed in health and life insurance. Anne went on to own an advertising agency where she worked with businesses. She has been writing about personal finance for ten years.
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