Portfolio turnover rate

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Portfolio turnover rate

For an investment company, an annualized rate found by dividing the lesser of purchases and sales by the average of portfolio assets.

Portfolio Turnover Rate

The ratio at which a portfolio trades the securities in it. A higher turnover rate indicates active management; if it becomes very high, this may indicate that the broker or manager is trading securities for the sake of collecting more fees. It is calculated as the trading volume of the portfolio as a percentage of the entire portfolio. See also: Prudent person rule.
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HDFC Mutual Fund plans such as HDFC Top 200 and HDFC Equity have the lowest portfolio turnover ratios.
A low portfolio turnover ratio means the fund manager is holding stocks for longer periods.
HDFC Mutual Fund schemes such as HDFC Top 200 and HDFC Equity have the lowest portfolio turnover ratios in the industry.
20 per cent is the portfolio turnover ratio of HDFC Top 200, one of the lowest in the large- & mid-cap equity diversified category.
Standardizing the computation and disclosure of (i) fund expenses and (ii) transaction costs, which yield a total investment cost ratio, and tell investors actual dollar costs; * Providing disclosure and definitions of all types of costs and requiring that the SEC approve imposition of any new types of costs; * Disclosing portfolio managers' compensation and stake in the fund; * Disclosing broker compensation at the point of sale; * Disclosing and explaining portfolio turnover ratios to investors; and * Disclosing proxy voting policies and records.