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This is how often a fund manager sells all the stocks in the mutual fund in a given year.

If a fund has a 100% Turnover Rate, that means the fund manager, in theory, has sold every single stock position once. In other words, he or she has turned over 100% of the stock positions.

In practice, however, this is not entirely accurate. The manager might have held 50% of all positions for the past five years and turned over the other 50% twice throughout the year. This is a 100% Turnover Rate by calculation.


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