Turnover Hurts Mutual Fund Returns

July 2003
Journal of Financial Planning;Jul2003, Vol. 16 Issue 7, p20
Academic Journal
The article focuses on a Mornigstar Inc. study of the trading patterns of 5, 200 U.S. stock mutual funds. Morningstar compared one-year, three-year and five-year returns ending in April 2003 for funds it ranked as high turnover. Average annual turnover is up from ten years ago, by the way, according to Morningstar. A decade ago, turnover averaged 69 percent. Today, it is 102 percent.


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