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.

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Portfolio turnover ratio in mutual funds