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

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
Scoring Fund Turnover Data
RELATED TERMS
  1. Compound Annual Growth Rate - CAGR

    The year-over-year growth rate of an investment over a specified ...
  2. Earnings Per Share - EPS

    The portion of a company's profit allocated to each outstanding ...
  3. Return On Investment - ROI

    A performance measure used to evaluate the efficiency of an investment ...
  4. Bear Fund

    A mutual fund designed to provide higher returns when the market ...
  5. Mean-Variance Analysis

    The process of weighing risk against expected return. Mean variance ...
  6. Ulcer Index - UI

    An indicator developed by Peter G. Martin and Byron B. McCann ...
  1. What is the formula for calculating the current ratio?

    Find out how to calculate the current ratio and what that result can tell you about a potential investment.
  2. What is the difference between arbitrage and speculation?

    Arbitrage and speculation are very different strategies. Arbitrage involves the simultaneous buying and selling of an asset ...
  3. Why is the compound annual growth rate (CAGR) misleading when assessing long-term ...

    The compound annual growth rate (CAGR) measures the return on an investment over a certain period of time. Below is an overview ...
  4. How do I take qualitative factors into consideration when using fundamental analysis?

    Fundamental analysis is the method of analyzing companies based on factors that affect their intrinsic value. There are two ...
comments powered by Disqus
Related Tutorials
  1. Ethical Investing Tutorial
    Fundamental Analysis

    Ethical Investing Tutorial

  2. Industry Handbook
    Investing Basics

    Industry Handbook

  3. Investing For Safety and Income Tutorial
    Bonds & Fixed Income

    Investing For Safety and Income Tutorial

  4. Discounted Cash Flow Analysis
    Fundamental Analysis

    Discounted Cash Flow Analysis

  5. Ratio Analysis Tutorial
    Fundamental Analysis

    Ratio Analysis Tutorial

Trading Center