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Portfolio turnover rate |
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Portfolio turnover rateFor an investment company, an annualized rate found by dividing the lesser of purchases and sales by the average of portfolio assets.Portfolio turnover rate Similar MatchesFactor portfolioFactor portfolioA well-diversified portfolio constructed to have a beta of 1.0 on one factor and a beta of zero on any other factors. Passive portfolio strategyPassive portfolio strategyA strategy that involves minimal expectational input, and instead relies on diversification to match the performance of some market index. A passive strategy assumes that the marketplace will reflect all available information in the price paid for securities, and therefore, does not attempt to find mispriced securities. Related: Active portfolio strategy. Characteristic portfolioCharacteristic portfolioA portfolio which efficiently represents a particular asset characteristic. For a given characteristic, it is the minimum risk portfolio, with portfolio characteristic equal to 1. For example, the characteristic portfolio of asset betas is the benchmark. It is the minimum risk beta = 1 portfolio. PortfolioPortfolioA group of investments held by an institution or individual.The process of choosing which investments go into a portfolio is known as portfolio management or 'asset allocation', and decisions are based on:whether the investment objective is income, growth or a balance of the twohow much risk the investor is prepared to acceptwhat the time horizons of the investor areBased on the answers to these questions (and others) the portfolio manager decides how to allocate funds between different classes of investment (bonds, shares, property), how to diversify between sectors, countries and shares, how much cash to hold, and when to make changes in the composition of the portfolio. If you are managing your own portfolio of investments, exactly the same considerations apply. Tilted portfolioTilted portfolioAn indexing strategy that is linked to active management through the emphasis of a particular industry sector, selected performance factors such as earnings momentum, dividend yield, price-earnings ratio, or selected economic factors such as interest rates and inflation. Further SuggestionsModern portfolio theoryReplicating portfolio Structured portfolio strategy Passive portfolio Zero investment portfolio Portfolio flow Portfolio variance Normal portfolio Inefficient portfolio Foreign portfolio investment Complete portfolio Portfolio theory Portfolio capital Portfolio Portfolio internal rate of return Portfolio opportunity set Diversified portfolio Duplicative portfolio Excess return on the market portfolio Feasible set of portfolios Portfolio approach Portfolio Minimum variance portfolio protected portfolio Well diversified portfolio |
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