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. Dividend

    A distribution of a portion of a company's earnings, decided ...
  2. Sharpe Ratio

    A ratio developed by Nobel laureate William F. Sharpe to measure ...
  3. Exchange-Traded Fund (ETF)

    A security that tracks an index, a commodity or a basket of assets ...
  4. Annuity

    A financial product that pays out a fixed stream of payments ...
  5. Einhorn Effect

    The sharp drop in a publicly traded company’s share price that ...
  6. Endowment Effect

    The endowment effect describes a circumstance in which an individual ...
  1. What causes dividends per share to increase?

    Learn what the major factors are that can lead to changes in a company's dividend payouts and drive increases in dividends ...
  2. What is the difference between ex-ante moral hazard and ex-post moral hazard?

    Learn what moral hazard is, the difference between ex-ante moral hazard and ex-post moral hazard and the behavioral changes ...
  3. Why would growth investors be attracted to the automotive sector?

    Learn why investing in the automotive sector is a smart move for a growth investor looking for greater returns than offered ...
  4. Where on the internet can I look up price to sales ratios for specific companies?

    Learn what price-to-sales ratio is, how investors can use it to compare different companies in the same sector and which ...

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