The turnover rate is calculated by counting the number of times an asset, security or payment changes hands during a year.
Businesses look at annual turnover rates to determine their efficiency and performance, while investment managers and investors use turnover rates to understand portfolio activity.
The annual turnover is often a future forecast based on one month or other shorter period of investment turnover.
A high turnover rate alone is not a reliable indicator of a fund’s quality or performance.
A floating rate fund is a fund that invests in financial instruments with variable or floating interest rates. A floating rate fund invests in bonds and debt instruments, the interest payments on which fluctuate depending on the level of the base interest rate.
Go-go fund - a mutual fund with an investment strategy focused on growth stocks and other high-risk securities.
These funds were at their peak in the 1960s, attracting investors with the promise of unusually high market returns.
A Growth and Income Fund is a mutual fund or ETF strategy that seeks to generate a total return for investors, including capital gains and current income.
Lifecycle funds are asset allocation funds in which the share of each asset class automatically adjusts to reduce risk as the desired retirement date approaches.
Market neutral refers to a type of investment strategy used by investment managers who seek to profit from both rising and falling prices in financial markets.
Market timing is the act of moving investment money into or out of the financial market - or switching funds between asset classes - based on predictive methods.