Portföljomsättningen

Portföljomsättningen, often translated as portfolio turnover, refers to the rate at which assets within an investment portfolio are bought and sold. It is a key metric used to assess the activity level of a portfolio manager or an investment strategy. A high portfolio turnover indicates that assets are frequently traded, while a low turnover suggests a more buy-and-hold approach.

The calculation of portfolio turnover typically involves comparing the total value of securities bought or sold over a specific period to the average value of the portfolio during that same period. Different calculation methods exist, but a common one is to take the lesser of the total purchases or sales and divide it by the average portfolio value. For example, if a portfolio has an average value of $100,000 and during the year $40,000 worth of securities were sold and $60,000 were bought, the turnover would be 40% (using the lesser of the two).

High portfolio turnover can lead to increased transaction costs, such as brokerage commissions and bid-ask spreads, which can erode investment returns. It can also result in higher capital gains taxes if assets are sold at a profit frequently. Conversely, a low turnover strategy might incur lower costs and potentially defer tax liabilities. The optimal turnover rate depends on the investment strategy, the manager's objectives, and market conditions. Some strategies, like active trading or market timing, naturally have higher turnover, while others, like value investing or index investing, tend to have lower turnover.