Thursday, December 8, 2016

Turnover Ratio of a Mutual Fund

 



A mutual fund scheme's turnover ratio tells you how frequently its fund manager buys and sells the underlying stocks. Higher the turnover ratio, more your fund manager churns the scheme's portfolio. For instance, a turnover rate of 100 per cent implies that the fund manager has replaced his entire portfolio during the given period. Technically, the turnover ratio is the lower of the total sales or total purchases over the period divided by the average of the net assets.

Turnover ratio indicates the way a fund is managed. A fund that moves in and out of stocks aggressively, in pursuit of quick gains upon spotting opportunities, will tend of have a high turnover ratio. On the other hand, a fund following buy-and-hold strategy will have a much lower turnover ratio.


Besides, a high portfolio turnover means the fund has to incur more transactions costs which are passed on to the investors in the form of expenses charged to the fund. Such funds need to justify it with superior returns, else higher costs can drag their relative performance down.






-----------------------------------------------
Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saver Mutual Funds to invest in India for 2016

Best 10 ELSS Mutual Funds in India for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Religare Tax Plan

4. DSP BlackRock Tax Saver Fund

5. Franklin India TaxShield

6. ICICI Prudential Long Term Equity Fund

7. IDFC Tax Advantage (ELSS) Fund

8. Birla Sun Life Tax Relief 96

9. Reliance Tax Saver (ELSS) Fund

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

-----------------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

-----------------------------------------------

 

0 comments: