What is turnover rate mutual fund?

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What is turnover rate mutual fund?

A mutual fund’s turnover rate is the percentage of its holdings that are bought and sold within a year. A fund with a high turnover rate is considered to be a actively managed fund while a fund with a low turnover rate is considered to be a passively managed fund.

The turnover rate is important because it affects the fund’s expense ratio. The higher the turnover rate the higher the expense ratio. The expense ratio is the percentage of the fund’s assets that are used to pay the fund’s expenses including the management fees 12b-1 fees and other expenses.

The turnover rate is also important because it affects the fund’s tax liability. A fund with a high turnover rate will generate a higher capital gains tax liability for its shareholders.

References:

https://www.investopedia.com/terms/t/turnoverrate.asp

https://www.fool.com/knowledge-center/what-is-a-mutual-funds-turnover-rate.aspx

## What is the definition of a turnover rate for a mutual fund?

The turnover rate for a mutual fund is the percentage of the fund’s holdings that are traded in a given year.

## Why do turnover rates matter for mutual fund investors?

High turnover rates can be a sign that a fund is taking on too much risk which can lead to increased volatility and potential losses.

## What is the average turnover rate for mutual funds?

The average turnover rate for mutual funds is about 60%.

## What is the turnover rate for the Fidelity Magellan Fund?

The turnover rate for the Fidelity Magellan Fund is 11%.

## What is the turnover rate for the Vanguard 500 Index Fund?

The turnover rate for the Vanguard 500 Index Fund is 4%.

## What is the turnover rate for the American Funds Growth Fund of America?

The turnover rate for the American Funds Growth Fund of America is 94%.

## What is the turnover rate for the Dodge & Cox Stock Fund?

The turnover rate for the Dodge & Cox Stock Fund is 12%.

## What is the turnover rate for the Franklin Mutual Shares Fund?

The turnover rate for the Franklin Mutual Shares Fund is 106%.

## What is the turnover rate for the T.

Rowe Price Growth Stock Fund?

The turnover rate for the T.

Rowe Price Growth Stock Fund is 45%.

## What is the turnover rate for the Vanguard Windsor II Fund?

The turnover rate for the Vanguard Windsor II Fund is 5%.