We gave different weights to each parameter-40% to mid-cap and small-cap exposure, 30% to
portfolio turnover ratio, 20% to cash holding and 10% to volatility in returns.
This is evident from the
portfolio turnover ratio of existing close- ended equity funds, which are mostly tax- saving funds.
In particular, the characteristics that will be examined are: fund size, age, expense ratio, portfolio turnover ratio, initial service charge (front-end load charge), fund investment objective, fund riskiness and private/government fund status.
As expected, portfolio turnover ratio is positively correlated with expense ratio, suggesting that higher trading activities lead to higher expenses.
Since unit trust investing has become a much more popular choice for investors, it would certainly be of interest for investors to know how fund performance relates to fund's fundamental characteristics such as fund investment objectives, fund size, age, expense ratio, portfolio turnover ratio, initial service charge (load fee), fund riskiness and private/government fund status.
This is evident from the
portfolio turnover ratio of existing close-ended equity funds, which are mostly tax-saving funds.
A low portfolio turnover ratio means the fund manager is holding stocks for longer periods.
The average portfolio turnover ratio of HDFC Top 200 in 2011- 12 was 19.
is portfolio turnover ratio of HDFC Top 200, lowest in large- and mid- cap equity category
A relatively higher
portfolio turnover ratio (145-150 per cent):
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.
