Many people don't know how the funds they buy are traded, let alone the operating style of fund managers. In fact, you can get a glimpse of the fund's turnover rate. Let's see how the capital turnover rate is calculated. What is the function of capital turnover rate?

How to calculate the capital turnover rate?

Calculation formula of capital turnover rate:

Capital turnover rate = (total amount of stocks bought and sold during the period /2)/ average market value of stocks in the last five quarters.

If the fund turnover rate is high and changes with the market changes, it shows that the fund tends to operate in band and the number of transactions is more frequent; If the fund turnover rate is low, it shows that the fund manager ignores short-term stock price fluctuations and tends to hold shares for a long time in order to obtain the benefits brought by enterprise growth.

Influencing factors of capital turnover rate;

1. the size of the fund

The investment style of fund managers will be influenced by the size of funds, and relatively small funds are relatively more convenient for fund managers to operate. This is a fact. The relatively large-scale funds are relatively difficult to operate frequently. Generally speaking, fund managers prefer stable holding.

2. The operating style of fund managers

Fund turnover rate is one of the intuitive manifestations of fund managers' investment style. For example, the turnover rate of fund managers with value investment concept will be relatively low; Fund managers who like industry rotation and follow hot spots will have a higher turnover rate.

Therefore, through the turnover rate of funds, we can observe the operating frequency of fund managers and the changing trend of market prices, and at the same time, we can also see the investment habits and some investment levels of fund managers, so as to judge the investment level and profitability of fund managers. The above is the introduction of fund turnover rate, I hope it will help everyone.