Scoring Fund Turnover Data
AAA
  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.

Return to the Main Menu.
Proceed to the next chapter on Fund Costs and Expenses.


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

    A method used to calculate loss reserves that uses weights proportional ...
  2. Kenney Rule

    A ratio of an insurance company’s unearned premiums to its policyholders’ ...
  3. Discounted Future Earnings

    A method of valuation to estimate the value of a firm.
  4. Altman Z-Score

    The output of a credit-strength test that gauges a publicly traded ...
  5. Maximum Drawdown (MDD)

    The maximum loss from a peak to a trough of a portfolio, before ...
  6. Gross Exposure

    The absolute level of a fund's investments.
  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 ...
  2. What is the long-term outlook of the chemicals sector?

    Examine the chemicals sector and its long-term growth prospects, focusing on demand in emerging market economies and within ...
  3. What does inventory turnover tell an investor about a company?

    Find out more about the inventory turnover ratio, what the ratio measures and what the inventory turnover ratio indicates ...
  4. What level of mergers and acquisitions is common in the chemical sector?

    Examine the current level of mergers and acquisitions among companies in the chemicals sector, a level that has surged higher ...

You May Also Like

Related Tutorials
  1. Fundamental Analysis

    Ethical Investing Tutorial

  2. Investing Basics

    Industry Handbook

  3. Bonds & Fixed Income

    Investing For Safety and Income Tutorial

  4. Fundamental Analysis

    Discounted Cash Flow Analysis

  5. Fundamental Analysis

    Ratio Analysis Tutorial

Trading Center