Portfolio Turnover is a measure of how frequently the securities in a portfolio are bought and sold. It is calculated by dividing the value of the securities bought and sold in a given period by the average value of the portfolio over that same period.A high portfolio turnover indicates that the portfolio manager is frequently buying and selling securities, while a low turnover indicates a longer-term investment approach. Portfolio turnover can have an impact on the performance of a portfolio, as well as the costs associated with buying and selling securities.There are several factors that can affect portfolio turnover, including market conditions, the investment style of the portfolio manager, and the type of securities in the portfolio. For example, a portfolio with a large allocation to stocks may have a higher turnover than a portfolio with a larger allocation to bonds, as stocks tend to be more volatile and may be bought and sold more frequently.It is important for investors to understand the portfolio turnover of their investments, as it can impact the performance of the portfolio and the costs associated with buying and selling securities. Some investors may prefer a low turnover approach, while others may be comfortable with a higher turnover approach, depending on their investment goals and risk tolerance.
