What is 'Portfolio Turnover'
Portfolio turnover is a measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by taking either the total amount of new securities purchased or the amount of securities sold  whichever is less  over a particular period, divided by the total net asset value (NAV) of the fund. The measurement is usually reported for a 12month time period.
BREAKING DOWN 'Portfolio Turnover'
The portfolio turnover measurement should be considered by an investor before deciding to purchase a given mutual fund or similar financial instrument. After all, a firm with a high turnover rate will incur more transaction costs than a fund with a lower rate. Unless the superior asset selection renders benefits that offset the added transaction costs they cause, a less active trading posture may generate higher fund returns.
In addition, cost conscious fund investors should take note that the transactional brokerage fee costs are not included in the calculation of a fund's operating expense ratio and thus represent what can be, in highturnover portfolios, a significant additional expense that reduces investment return.

Turnover Ratio
The percentage of a mutual fund or other investment vehicle's ... 
Annual Turnover
The percentage rate at which a mutual fund or exchangetraded ... 
Turnover
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Overall Turnover
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Asset Turnover Ratio
The amount of sales generated for every dollar's worth of assets ... 
Share Turnover
A measure of stock liquidity calculated by dividing the total ...

Investing Basics
What Is Portfolio Turnover?
Portfolio turnover measures a fundâ€™s percentage of assets that are bought and sold by its manager over a year. 
Mutual Funds & ETFs
Turnover
Turnover 
Mutual Funds & ETFs
Portfolio Turnover
By Richard Loth (Contact  Biography)"Critics have long said that money managers who buy and sell frequently are confusing motion with progress." Ian McDonald, The Wall Street Journal, August ... 
Fundamental Analysis
How to Calculate a Turnover Ratio
A turnover ratio measures a mutual fundâ€™s level of trading activity in a given time period, usually a year. 
Mutual Funds & ETFs
Fund IQ No. 5: Portfolio Turnover Ratio
By Richard Loth (Contact  Biography)Why should fund investors be concerned about portfolio turnover? There are four major reasons, and they all impact a fund's investment quality: There ... 
Retirement
Turnover Ratios Weak Indicator Of Fund Quality
This indicator is not as important as some investors might think. 
Investing
Understanding Turnover
Turnover has a number of different, but related, meanings depending on the context in which it is used. Generally, it means the number of times an item is replaced with a new or similar version ... 
Mutual Funds & ETFs
Scoring Fund Turnover Data
By Richard Loth (Contact  Biography)The Morningstar and Value line mutual fund reports all present current and historical portfolio turnover figures. This is a useful piece of comparative data. ... 
Professionals
Operating Efficiency Ratios
CFA Level 1  Operating Efficiency Ratios. Learn the three operating efficiency ratios. Includes definitions and formulas for total asset, fixedasset and equity turnovers. 
Fundamental Analysis
Understanding Activity Ratios
Activity ratios measure how effectively a business uses its assets.

How should I use portfolio turnover to evaluate a mutual fund?
Learn about the turnover rate for mutual funds, and understand the effect higher turnover may have on fund performance and ... Read Answer >> 
What is considered a good turnover ratio for a mutual fund?
Understand what the concept of turnover ratio represents in relation to a mutual fund, and how an investor can evaluate a ... Read Answer >> 
What is a good turnover ratio for a mutual fund?
Learn about mutual fund turnover ratios and why the ideal ratio may differ based on the type of mutual fund and your investment ... Read Answer >> 
How can a mutual fund raise or lower its turnover ratio?
Find out how a fund manager can raise or lower a fund's turnover ratio, including how to interpret this metric and what it ... Read Answer >> 
What does a high turnover ratio signify for an investment fund? (KNOW)
Find out more about the turnover ratio, what the turnover ratio measures and what a high turnover ratio indicates about an ... Read Answer >> 
How can a company raise its asset turnover ratio?
Find out more about the asset turnover ratio, what it measures, how to calculate the ratio and how a company could increase ... Read Answer >>