Turnover ratio


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Turnover Rate

The ratio at which a fund or 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 in fees. It is calculated as the trading volume of the fund or portfolio as a percentage of the entire portfolio. See also: Prudent person rule.

Turnover ratio.

A mutual fund's turnover ratio measures the percentage of holdings that the fund sells, or turns over, in a year.

For example, if a stock fund manager has a portfolio of 100 stocks at the beginning of the year, sells 75 of them and buys 75 different stocks, the turnover rate of the fund is 75%.

Some investors look for funds with lower turnover ratios, since limited trading may help to minimize capital gains taxes and trading costs. However, a high turnover ratio can also produce strong returns, which can offset the added costs and produce a net gain.

References in periodicals archive ?
The data for all the variables such as market capitalization, stock traded, turnover ratio, domestic credit to private sector, money supply, remittances, consumer price index, urban and rural populations has been obtained for the period from 1989 to 2013 from World Development Indicators (2015), World Bank2 for the 10 low human developed countries [Bangladesh, Cote d'Ivore, Kenya, Nigeria, Pakistan, Papua New Guinea, Tanzania, Uganda, Zambia and Zimbabwe].
The inventory turnover and fixed asset turnover ratios are significantly higher in U.
On high turnover ratio (68%), he said this was due to higher incremental flows into the fund than its average size.
The two portfolios closely matched each other in total net assets, expense ratio, age and turnover ratio.
Agency costs: It is obtained from the interaction between assets turnover ratio and operation expenses to sale.
Table 4 shows the results of the robust regressions that explain firms' inventory turnover ratios by firm characteristics, the medium and the heavy industry dummies, the time variable, the "Contractionary" dummy, and the Leverage*Contractionary interaction term.
Turnover ratios revealed that the circulation of working capital was also not efficient.
The results of the analysis are rather well-grounded: return on assets ratio, leverage ratio, and equity turnover ratio appeared to have the lowest significance.
We believe that the turnover ratio, as you accurately defined in your question, gives a truer indication of the actual level of activity in the marketplace.
About 20% of the indebted Bulgarian companies have defined their debts as "large"; the only criteria for that was each firm's debt to turnover ratio.
Because [MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII] can be positive or negative, it follows that the equilibrium unit cost of talent under win maximization [MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII] can be above or below the marginal revenue [MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII], depending on the size of the wage- turnover ratio [?