A crucial aspect of fund management is the portfolio turnover rate, which measures the frequency of changes in a fund's portfolio securities on an annual basis. For instance, a fund with Rs 100 crore in assets that buys and sells securities worth Rs 100 crore in a year would have a turnover rate of 100%. Aggressive funds tend to have higher turnover rates compared to conservative ones that prioritize long-term investments. However, a high turnover rate can also lead to increased expenses for the fund.
