Therefore, a high turnover rate means that fund managers trade more frequently. For example, a fund A has a turnover rate of 300% in 2020, which means that the fund has changed all its shares three times in a year, and the low turnover rate means that the fund manager does not trade frequently. For example, a fund B has a turnover rate of 20 100%, which means that the fund will only hold shares within one year.
How to see whether the turnover rate is high or low?
At present, the average turnover rate of partial stock funds is around 250%. We can use this data as a reference, but then again, is there really a good or bad turnover rate?
In fact, there is no difference between good and bad on the whole, but the fund manager's cognition and recognition of investment philosophy and investment style, and whether it can create more income for investors in the long run.
If it is a fund with low turnover rate, fund managers often pay more attention to choosing companies and tracking their long-term development. Such fund managers are more cautious when changing their positions, usually including Zhang Kun and Liu Yanchun.
If it is a fund with high turnover rate, the fund manager often pays more attention to style and timing, and is considered as a trading player. They will constantly adjust their positions according to the style of the market, for example, with a little technology in the technology market and a little new energy stocks in the new energy market. Therefore, the overall market style is greatly affected, and the typical fund manager is similar to Fangyuan.