Portfolio Turnover on WebNotes

Portfolio turnover ratio in mutual funds

Mon, 18 May 2026 00:00:00 +0000

Portfolio turnover ratio measures how frequently a mutual fund manager buys and sells securities, expressed as an annual percentage of the portfolio. It indicates the trading intensity of the fund.

Calculation

Portfolio turnover = Min(Buys, Sells) / Average AUM × 100

Where:

Buys: Total value of securities purchased during the year.
Sells: Total value of securities sold during the year.
Average AUM: Average scheme AUM over the period.

A turnover of 100% means the fund effectively replaced the entire portfolio once during the year.

PPFAS vs Quant Mutual Fund

Sat, 16 May 2026 00:00:00 +0000

PPFAS Mutual Fund and Quant Mutual Fund are two Indian asset management companies that operate at structurally opposite ends of the investment-philosophy spectrum. PPFAS Mutual Fund , set up on 10 October 2012 by founder Parag Parikh , operates an explicit long-term value-investing philosophy with low portfolio turnover, focused portfolios, and a doctrinal commitment to margin of safety and behavioural finance integration. Quant Mutual Fund , relaunched in 2018 after the Quant Capital group acquired the Escorts Mutual Fund licence, operates a quantitative-momentum framework called Variable Liquidity Risk Tolerance (VLRT) that drives high portfolio turnover and rapid sector and stock rotation.

PPFCF vs Quant Flexi Cap Fund

Sat, 16 May 2026 00:00:00 +0000

The Parag Parikh Flexi Cap Fund (PPFCF) and the Quant Flexi Cap Fund are two schemes within the SEBI flexi cap mutual fund category that operate at opposite ends of the investment-philosophy spectrum. PPFCF, managed by PPFAS Mutual Fund , is a long-term value-investing scheme with a focused portfolio of 25 to 37 stocks and a portfolio turnover ratio consistently below 25 per cent annually. The Quant Flexi Cap Fund, managed by Quant Mutual Fund , is a quantitative-momentum-driven scheme with substantially higher portfolio turnover, often exceeding 200 to 400 per cent annually, and rapid sector and stock rotation in response to changing momentum signals.

Portfolio turnover ratio in mutual funds

Tue, 12 May 2026 00:00:00 +0000

Portfolio turnover ratio (PTR) is a measure of how actively a mutual fund trades its portfolio over a given year, expressed as a percentage of the fund’s average net assets. A portfolio turnover ratio of 100 per cent indicates the entire portfolio was replaced (bought and sold) once during the year; a ratio of 200 per cent means the average holding was replaced twice. Low turnover indicates a buy-and-hold philosophy; high turnover indicates frequent repositioning.