Home > Term: turnover ratio
turnover ratio
A measure of a fund's trading activity that is computed by taking the lesser of all (i) purchase transactions and (ii) sales transactions, in each case excluding all transactions in securities with less than a year to maturity, and dividing by the fund's average monthly net assets. The resulting percentage loosely represents the percentage of the portfolio's holdings that have changes over the past year.
- Part of Speech: noun
- Industry/Domain: Financial services
- Category: Funds
- Company: Merrill Lynch
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