A manager buys and sells scrips regularly, sometimes every day, to generate a return (Photo: iStock)
A manager buys and sells scrips regularly, sometimes every day, to generate a return (Photo: iStock)

Is your mutual fund buying or selling stocks too much?

  • If the portfolio turnover is greater than 100%, that typically means that the manager has churned the portfolio once over, completely
  • A high turnover is not necessarily bad, but a consistently high turnover is not desirable unless the inherent strategy of the scheme calls for a high churn

A manager buys and sells scrips regularly, sometimes every day, to generate a return. But when a manager buys and sells far too often, there is a problem. A turnover ratio measures the extent to which a manager churns her portfolio. If the portfolio turnover is greater than 100%, that typically means that the manager has churned the portfolio once over, completely. A high turnover is not necessarily bad, but a consistently high turnover is not desirable unless the inherent strategy of the scheme calls for a high churn. Here are equity s with the highest turnover.

Here are equity s with the highest turnover.
Here are equity s with the highest turnover.

Click here to see the enlarged version of the graphic

Close