Turnover Ratio definition

An indicator of fund trading activity that shows how often the portfolio composition changes. It is expressed as a percentage. An asset turnover ratio of 100% usually indicates that each year the portfolio composition changes completely.

An indicator of 200% means that the portfolio was renewed twice a year. For example, if a fund has assets of $ 100 million. SKK and sells shares for 40 mil. SKK, the indicator of asset turnover equals 40%. A high asset turnover indicator is, but not always, the cause of large tax payments.

Related words

Trailing StopTransaction RiskTranslation ExposureTwo Way QuoteTurnover RatioTotal return