Portfolio Metrics

Portfolio Turnover

Definition

What is Portfolio Turnover?

A measure of how frequently a fund buys and sells portfolio holdings.

Example in practice

A 70% turnover rate suggests securities equal to a substantial share of the portfolio changed during the period.

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The percentage of a portfolio invested across asset classes such as cash, bonds, shares, and property.

Spreading investments across assets, issuers, sectors, or markets to reduce dependence on one exposure.

The degree to which a portfolio depends on a small number of holdings, sectors, or issuers.

The identity and due-diligence checks a financial institution performs before serving an investor.

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