What does capital turnover mean? Simply put, the turnover rate is the frequency at which a stock changes hands. Usually, the turnover rate of new shares after listing is relatively high, and the turnover rate of retail investors is also higher than that of institutions, because retail investors are not as rational as institutions, and institutions will not adjust positions frequently.

Not only stocks, but also funds have the concept of turnover rate, which represents the frequency of fund managers buying and selling stocks. For example, if the turnover rate of a fund is 100% in a year, then each stock of this fund is changed once on average in this year, and the average holding time is 1 year. If the turnover rate is 200%, the average holding time of each stock is half a year.

The turnover rate data of funds can be found directly on third-party platforms (such as Alipay and Tian Tian Fund), such as the investment style of general house funds.

What is the significance of turnover rate? If the fund turnover rate is high, it shows that the fund manager operates frequently, and this fund is more suitable for short-term investors who are optimistic about a certain industry or theme;

If the turnover rate of the fund is low and the fund has performed well in the near future, it means that the fund pays attention to long-term value investment, and those who want to play short-term do not have to buy it.

If the turnover rate of the fund fluctuates, it means that the investment style of the fund is relatively floating, which is simply unreliable. Investors should carefully consider buying.

Generally speaking, it is a good angle to choose a fund through the turnover rate. Combined with other aspects, you can choose a good fund to help investors make money. Ok, that's all about the capital turnover rate, I hope it will help everyone. Warm reminder, the fund is risky and needs to be cautious in investment.