Scoring Fund Turnover Data
  1. Portfolio Turnover
  2. Fund I-Q No. 5: Portfolio Turnover Ratio
  3. Scoring Fund Turnover Data

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. (See sample Morningstar and Value Line reports.)

This is the entry we need to complete in the Fund Investment Quality Scorecard for an analysis of a mutual fund's portfolio turnover:



Targets for portfolio turnover in a managed stock fund would peg the current percent­age at or below 30% for a high evaluation and at or below 60% for an above-aver­age evaluation. In addition, the fund's turnover rate should be substantially below its peer group. The fund's current and historical portfolio turnover rates should be comparable, and if the former is lower, so much the better. If these investment qualities are evident, the fund should get a positive rating in this aspect of its operations.

Hopefully, you now have a better appreciation of what portfolio turnover is all about. This seemingly minor percentage figure tells us a lot about a fund manager's commitment to con­taining costs, which, if the job is well done, makes a fund more profitable and investor friendly.

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  1. Portfolio Turnover
  2. Fund I-Q No. 5: Portfolio Turnover Ratio
  3. Scoring Fund Turnover Data
RELATED TERMS
  1. Turnover Ratio

    The percentage of a mutual fund or other investment vehicle's ...
  2. Annual Turnover

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  3. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and ...
  4. Overall Turnover

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  5. Turnover

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  6. Receivables Turnover Ratio

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RELATED FAQS
  1. 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 >>
  2. 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 >>
  3. 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 >>
  4. 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 >>
  5. 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 >>
  6. What is the difference between accounts payable turnover ratio and accounts receivables ...

    Learn the difference between the accounts payable turnover ratio and the accounts receivable turnover ratio. Understand what ... Read Answer >>

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