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Mutual Funds Performance and Turnover Ratios

David Saito-Chung, Investor's Business Daily, studied top mutual funds performance and turnover ratios (in this article from Investor's Business Daily, via Yahoo Finance) and found that, "When it comes to choosing a mutual fund, remember this when you view the portfolio turnover ratio: Don't worry about it." Saito-Chung reports that a "screen by Morningstar confirms how turnover among the best funds is an irrelevant factor. Among the 1,013 funds whose 10-year track record beat their category averages, the average turnover in the past reporting year was 65%. But 24 funds had a turnover ratio of 200% or more, and 227 had turnover above 100%." The article also includes a chart comparing ten top mutual funds that "beat their peers" over the past ten years, five with high turnover ratios and five with low turnover ratios.