n NISM Certifications
V-A NISM Series V-A
Medium

What does a higher portfolio turnover imply?

Practice question from NISM Series V A - Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. It implies higher transaction costs

    Correct answer

  2. B

    It implies higher capital gains

  3. C

    It implies lower capital gains

  4. D

    It implies a long-term orientation of the fund

Why this is the answer

Higher portfolio turnover means more frequent buying and selling of securities, leading to higher transaction costs for the mutual fund.

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