What is the portfolio turnover rate in mutual funds? How does a mutual fund’s portfolio turnover compare to turnover in index funds? Portfolio turnover is the ratio of a portfolio’s total assets to its total purchases and sales. Because higher portfolio turnover creates more fees, such as commissions to stockbrokers, mutual funds cost investors more money due to their higher turnover rates. Keep reading to learn how to evaluate portfolio turnover rates.
What Is the Turnover Rate in Mutual Funds? Explained
