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Turnover
Term category: Mutual Funds
In 10 words or less: Refers to the frequency of shares traded within a portfolio.

Definition: In mutual funds, it's the percentage of total shares in the portfolio that are traded in a given period (usually a year).

StockJargon Advice: Investors prefer mutual funds with lower turnover rates because they have lower fees than those with higher turnover rates. Also, if a mutual fund is constantly buying and selling shares, the investor will face a lot of short-term capital gains, which will hurt them on their taxes.

As investors, we want to stick to buy and hold strategies...so we would hope our mutual funds do the same.

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The Interpretation of Financial Statements by Benjamin Graham
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Finance for Non-financial Managers by Gene Siciliano

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