TITLE

Low Turnover, Better Results

PUB. DATE
October 1997
SOURCE
Journal of Financial Planning;Oct97, Vol. 10 Issue 5, p20
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
The article presents a study conducted by Morningstar Inc. to determine the significance of mutual funds, while highlighting the turnover periods of the funds. Morningstar Inc. found that mutual finds that held on longer to their holdings significantly outperformed funds with higher turnovers. Morningstar examined hundreds of U.S. stock funds over one, three, five, and ten-year periods. For the one year period funds that held stocks an average of five years returned 27.01 percent compared with 17.55 percent for funds that held stocks one year or less. Morningstar attributed the lower performance to higher trading costs, taxes, and missing out on full appreciation.
ACCESSION #
9712013882

 

Related Articles

  • Your guide to the managed funds data.  // Money (Australia Edition);Jun2014, Issue 168, p117 

    The article offers guidance on the rating of managed investment funds based on criteria set by investment research provider Morningstar. Rating criteria include APIR Systems codes, management expense ratio/investment cost ratio, returns, entry fees and star rating. Data presented shows the top...

  • Dumpster diving for mutual funds. Williamson, Christine // Pensions & Investments;1/7/2002, Vol. 30 Issue 1, p8 

    Reports the investment of Morningstar Inc. in five international stock funds in the United States. Stability record of Dresdner RCM International Growth Equity Fund; Potential of Putnam International Voyager; Return on investments of Scudder International.

  • The power of concentration. Revell, Janice // Fortune;8/23/2004, Vol. 150 Issue 4, p134 

    The article reports that mutual funds that buy fewer stock and hold them longer beat the competition. Although it's a strategy advocated by stock-picking legends like Benjamin Graham, it's apparently not an approach favored by most mutual fund managers today: According to Chicago-based fund...

  • VOLATILITY. Smythe, David // Money (Australia Edition);Dec2015/Jan2016, Issue 185, p55 

    The article presents information on investment products which offer protection against market volatility, including Bennelong Long Short Equity Fund, Winton Global Alpha Fund, and Triple3 Volatility Advantage Fund.

  • Are green funds true to their colors? Gunther, Marc // Fortune;2/7/2005, Vol. 151 Issue 3, p106 

    Examines whether socially responsible mutual funds live up to their name. How the Sierra Club Stock Fund, a mutual fund that promises to invest for sustainable growth, does not own shares in a single company that promotes alternative energy or reports publicly on environmental practices;...

  • Are green funds true to their colors? Gunther, Marc // Fortune International (Europe);2/7/2005, Vol. 151 Issue 2, p80 

    Examines whether socially responsible mutual funds live up to their name. How the Sierra Club Stock Fund, a mutual fund that promises to invest for sustainable growth, does not own shares in a single company that promotes alternative energy or reports publicly on environmental practices;...

  • The Fat-Pitch Approach to Stock Investing.  // Morningstar StockInvestor;9/15/2006, Vol. 6 Issue 3, Special section p4 

    The article explains the components of Morningstar's practical stock evaluation and investment techniques for individual investors. The fat-pitch approach to stock investing has five parts, which includes looking for wide-moat companies, always having a margin of safety, not being afraid to hold...

  • The Growth Portfolio. Tran, Toan // Morningstar GrowthInvestor;Jul2006, Vol. 2 Issue 2, p2 

    Focuses on several stocks with high growth and earnings prospects under Morningstar Growth Portfolio. Performance of the Morningstar U.S. Growth Index; Outlook on the stocks of Kinetic Concepts.

  • How Does Morningstar Calculate Its Star Rating?  // Morningstar GrowthInvestor;Sep2006, Vol. 2 Issue 4, Special section p9 

    The article discusses how investment information services provider Morningstar evaluates its stocks by star rating. Morningstar's star rating is based on the analyst's estimate of how much a company's business is worth per share. Worst stocks are rated with one star while high stocks are rated...

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics