Of course,
bond mutual fund turnover can vary significantly due to the average duration of the bonds within the fund.
Higher stock and
bond mutual fund turnover indicates that management is very active in buying and selling.
Not exact matches
Even when investors stick to stock,
bond, and
mutual fund ownership, their rejection of simple investing basics such as low
turnover results in pathetic returns on their money.
Some
mutual funds, including money market
funds that invest in municipal
bonds and stock or
bond funds with limited portfolio
turnover, may limit your taxable income.
Nevertheless, noload
bond index
funds should almost always have lower
turnover, when compared to more actively managed
bond mutual funds.
Selecting 3 or 4 stock and
bond index
mutual funds is enough to outperform most active managers and robos over the long term, and you will save more money with reduced
fund expenses, lower
turnover, and no ETF - related costs.
I currently contribute weekly into a good, low MER, low
turnover Canadian balanced
mutual fund holding blue - chip Canadian equities and high - quality Canadian
bonds.