Investment Turnover Ratio
Investment turnover is a measure of a fund or account's trading activity and refers to the amount of assets that are disposed of during a given time frame. High investment turnover can result in a high short-term capital gains tax for the investor, and can also indicate that a financial adviser is trading excessively to generate high commissions. Depending on the fund or account objective, some investment turnover is to be expected, even if only for portfolio rebalancing.
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Calculating Investment Turnover
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