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How to Calculate the Turnover Ratio for Mutual Fund Investment Assets

By Motley Fool Staff – Updated Apr 29, 2025 at 10:36PM

Key Points

  • Mutual funds' trading volume, reflected in the turnover ratio, affects their fees.
  • High turnover ratios in actively managed funds can erode returns due to trading costs.
  • Low turnover suggests a fund employs a long-term buy-and-hold strategy.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

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