Turn-Over Ratio

The percentage of the portfolio's holdings that have been replaced in a given year.

Ryan John Barcelona avatar
Written by Ryan John Barcelona
Updated over a week ago

The turnover ratio or turnover rate is the percentage of the portfolio's holdings that have been replaced in a given year (calendar year or whatever 12-month period represents the fund's fiscal year).

For example, a mutual fund investing in 100 stocks and replacing 50 stocks during one year has a turnover ratio of 50%.

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