Turnover Ratio

If you have 10k in a fund and the turnover rate for the year is 348%, what would that amount to in costs?

For an investment company, turnover rate is the volume of shares traded as a percentage of the number of shares in the company’s portfolio. A high turnover rate may indicate excessive trading and commissions.

If the trades were profitable, the commissions are deducted from the sale profit which reduces the capital gain distribution to shareholders. If the trades were not profitable, the commissions will just push the Net Asset Value of the fund even lower.

Oh ok, thank you.