Fund turnover rate, the full name of "fund position turnover rate during the reporting period", also known as "shareholding turnover rate", refers to the frequency of fund managers changing hands to buy and sell stocks in a period of time.

We can simply understand the turnover rate as the trading frequency of the stocks held by the fund. By observing the turnover rate of funds, we can infer the changes of fund portfolio during a certain observation period, which indirectly proves the investment style of fund managers.

Calculation formula of capital turnover rate

Turnover rate = (the total amount of stocks bought and sold by the fund in a certain interval /2)/ the average market value of stocks held by the fund in this interval.

Note: The relevant data in the above formula can be viewed in the major changes of the stock portfolio in the annual report and semi-annual report of the Fund during the reporting period. The stock market value is the average value of the stock assets at the beginning and during the period, which can be viewed through the regular report of the Fund. Many sales platforms that provide fund information will also directly calculate the turnover rate of products for your reference.

Experienced investors may find that the turnover rate of different fund products is particularly different, and the turnover rate of the same product in different periods is not static. The turnover rate of some equity funds exceeds 5000% in half a year, and that of some flexible allocation funds is less than 5%.

Excluding the extreme market, let's choose some representative products to show you: Take harvest fund's products as an example. By the middle of last year, the turnover rate of Guikai team to Harvest products was 1 10.45438+0%, while the turnover rate of Tan Li team to Harvest products was 37.47%.

The reasons affecting the turnover rate

The difference and change of turnover rate stems from the different behaviors of fund managers in managing portfolios and buying and selling stocks. This change generally comes from the following reasons.

1, the natural turnover rate of different types of funds is quite different. For example, the turnover rate of active equity funds is significantly higher than that of hybrid funds, because the share ratio of active equity funds is higher than that of hybrid funds.

Source: Morningstar Company.