what is a turnover ratio 
the turnover ratio or turnover rate in investing is the percentage of a mutual fund or other portfolio holdings that have been replaced in the course of one year some funds hold their equity positions for less than 12 months meaning their turnover ratios exceed 100 that doesn t necessarily mean that every holding has been replaced the ratio reflects the proportion of stocks that have changed in one year formula and calculation of the turnover ratiothe turnover ratio will be listed in the company s prospectus for the mutual fund it would be difficult for an investor to work it out since it would require knowing the sales price of every transaction made during the year and the average monthly net value of the fund over 12 months the formula is as follows turnover ratio total dollar value of all new portfolio assets or value of portfolio assets sold if that is the smaller monthly average net assets of the fund in dollars x 100