 "Note: Table shows five funds from each category with the lowest turnover ratio. Data are for April or the earliest period for which data was available, Source: Ace MF")
The turnover ratio tells you how much a fund manager churns his portfolio. A ratio of 100 per cent means the manager holds stocks within his portfolio for one year on an average. Remember, there is a cost to trading. If the manager’s hectic buying and selling does not work, the fund would have incurred a cost without commensurate gain.
Prefer funds with relatively lower turnover ratio and a sound record. It indicates the manager is convinced about the stocks he has bought and is willing to wait till his investment ideas work out.
A ratio of around 30 per
