1. How normal is the capital turnover rate?
Fund turnover rate can be used to consider the frequency of fund portfolio changes, so as to understand the investment style and investment efficiency of fund managers.
The calculation formula of fund turnover rate is: turnover rate = (the total amount of stocks bought and sold by the fund in an interval /2)/ the average value of the market value of stocks held by the fund in this interval.
Generally, the fund turnover rate does not need to be calculated by investors themselves, and the fund platform metropolis provides the turnover rate information of each fund. The average turnover rate of cemetery funds in 20 19 years is about 1.8 times, but there will be great differences between different fund companies' products and different types of funds.
Second, is the capital turnover rate high?
The high turnover rate of the fund shows that the fund manager operates frequently, and the expected return on investment mainly comes from the short-term price difference caused by the operation of the timed band, and the investment style is extreme. The low turnover rate of funds indicates that fund managers are cautious and tend to hold them for a long time.
The turnover rate of the fund is only one of the indicators to measure the investment value of the fund, and it is meaningful to compare the turnover rate under the same type of fund at the same time.
For example, the turnover rate of active funds is generally higher than that of passive funds, and the turnover rate of funds in bull market is generally higher than that in bear market.
But what is certain is that if the capital turnover rate is high, the transaction cost of position adjustment will also increase and the investment risk will be higher.
The above information about the fund turnover rate is more or less normal on the whole, and I hope it will help you. Warm reminder, financial management is risky and investment needs to be cautious.