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How to Measure Investment Turnover Ratio

An investment turnover ratio measures how actively a fund is managed. A high turnover ratio means the manager is buying and selling stocks on a regular basis, while a low turnover means the fund holds its investments for a longer period of time. Though a high investment turnover ratio might make you feel like your manager is more involved, it's not always the best investment strategy because of the cost of each trade. According to Morningstar, managers with higher turnover rates usually have more aggressive investing strategies.

Divide the total sales by the investment fund's assets during a particular period. For example, if the mutual fund has $1 million in stock sales during the quarter and $5 million in assets, divide $1 million by $5 million to get 0.2.
Multiply the result by the number of periods per year. In this example, since there are four quarters per year, multiply 0.2 by 4 to get 0.8.
Substitute the result for "x" in the following ratio: "x to 1." In this example, substitute 8 for "x" to get an investment turnover ratio of 0.8 to 1. This means that over one year, each dollar of assets will get sold 0.8 times.

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This is a very informative and helpful information you have discussed. Business really has a lot of things to manage. The investment turnover ration is also measurable where we can monitor the funds that are coming in and out the company. This is a new knowledge for me and I hope that this will also help other people, especially businessman or someone who is opening his business. You have well discussed the topic where giving an example is a big help for us to understand it well.


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Nice post because Asset turnover is a financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue or sales income to the company. Companies with low profit margins tend to have high asset turnover, while those with high profit margins have low asset turnover. Companies in the retail industry tend .
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shariq on Wednesday, June 12, 2019 11:27 PM
Dynamix Group launched new project Dynamix Parkwoods Thane coming up at the Thane, High Tech location of the Mumbai. The total project area of Dynamix Parkwoods Thane is spreaded across the 11 acres of region where the whole Dynamix Parkwoods Thane is getting ready for their homebuyers looking for the luxurious homes. Dynamix Parkwoods Thane is going to offer 2 and 3 BHK spacious apartments integrated with the number of world class amenities that gives the best living structure for the lifestyle. Dynamix Parkwoods Thane offers rooms from 675 sqft to 817 sqft. The main attraction of Dynamix Parkwoods Thane developed by Dynamix Group is providing apartments surrounded with the natural touch which created the balanced lifestyle to live.
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sachin on Wednesday, June 12, 2019 11:34 PM
Kalpataru Paramount kapurbawdi thane is the newlaunch Project by Kalpataru Group in Thane, Mumbai. Kalpataru Paramount kapurbawdi thane defined by its exclusive location, architecture, amenities & connectivity. Kalpataru Paramount Thane West is a project spread in 5.40 Acres acers of Land Parcel with 5 exclusive towers with 275 units. Kalpataru Paramount kapurbawdi thane is the tower with superior Life style which you feel like a Star. Kalpataru Paramount Thane offers you excellent private views and is designed to offer optimum cross ventilation thus providing access to natural breeze and Sunlight. Throw open your windows to a draft of the coolest, most sublime breeze and stunning views of green.
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sachin on Friday, June 14, 2019 1:11 AM
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sachin on Wednesday, June 19, 2019 4:38 AM
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shariq on Wednesday, July 24, 2019 10:19 PM
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