Should you opt for a fund with a low or a high turnover ratio?

The turnover ratio is a measure of the amount of churn in a fund's portfolio. If the fund manager churns or changes the portfolio once during the year, it will have a 100 per cent churn. If he churns only half the portfolio, it will have a turnover ratio of 50 per cent. And if he churns it twice in a year, it will have a turnover ratio of 200 per cent.  In the matter of turnover ratio, the best thing to do is to stick to the mean. A very low churn can at times (though not always) be indicative of a portfolio that doesn't receive adequate attention. A fund with a very high ch.....

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