mf scheme name, whose holding will be changed every 3 months? check corresponding stocks
In the Indian mutual fund landscape, certain schemes are characterized by high portfolio turnover ratios (PTR), indicating frequent changes in their holdings, often on a quarterly basis. A higher PTR suggests that the fund manager actively buys and sells securities within the portfolio.
Here are some mutual fund schemes in India with notable portfolio turnover ratios:
Shriram Flexi Cap Fund
This flexi cap scheme had the highest portfolio turnover ratio of 650% in March 2024, up from 600% in February 2024.
Quant Large Cap Fund
This large cap fund reported a PTR of 542% in March 2024, slightly down from 557% in February 2024.
Shriram ELSS Tax Saver Fund
The portfolio turnover ratio for this Equity Linked Savings Scheme (ELSS) was 518% in March 2024, an increase from 467% in February 2024.
Quant Focused Fund
This fund had a PTR of 424% in March 2024.
Quant Flexi Cap Fund
Reported a PTR of 393% in March 2024.
Quant Large & Mid Cap Fund
Had a PTR of 382% in March 2024.
Quant Mid Cap Fund
Reported a PTR of 329% in March 2024.
Quant Value Fund
Had a PTR of 317% in March 2024.
Quant Active Fund
Reported a PTR of 278% in March 2024.
WhiteOak Mid Cap Fund
This midcap fund had a portfolio turnover ratio of 250% in March 2024.
Understanding Portfolio Turnover Ratio (PTR):
Definition: PTR measures the frequency with which a fund's holdings are bought and sold over a specific period, typically a year.
Implications of High PTR:
- Active Management: A high PTR indicates an actively managed fund with frequent trading.
- Transaction Costs: Frequent trading can lead to higher transaction costs, potentially impacting net returns.
- Tax Considerations: Short-term capital gains from frequent trades may have tax implications for investors.
Considerations for Investors:
Investment Strategy Alignment: Ensure that the fund's active trading strategy aligns with your investment goals and risk tolerance.
Cost Analysis: Evaluate whether the potential for higher returns justifies the increased transaction costs associated with high PTR.
Performance Evaluation: Review the fund's historical performance to determine if active management has led to superior returns compared to peers with lower PTR.
Conclusion:
While funds with high portfolio turnover ratios may offer opportunities for gains through active management, they also come with increased costs and potential tax implications. Investors should carefully assess whether such funds align with their investment objectives and consider consulting a financial advisor for personalized advice.