Podcast Beta
Questions and Answers
What is portfolio turnover and how is it calculated?
Portfolio turnover refers to the frequency with which changes are made in a fund's portfolio. It is calculated by taking the lower of the total of new stocks purchased or sold over 12 months, divided by the fund's average assets under management (AUM).
What does a high portfolio turnover indicate?
A high portfolio turnover indicates that there are frequent changes being made in the fund's portfolio, similar to how Sudha frequently buys and sells stocks.
Who is more likely to have a high portfolio turnover, Sudha or Shikha?
Sudha is more likely to have a high portfolio turnover as she buys and sells stocks frequently.
What does it mean if a mutual fund frequently churns its portfolio?
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How does portfolio turnover differ between Sudha and Shikha?
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