Zacks Market Neutral Holdings Turnover vs. Minimum Initial Investment Fundamental AnalysisZacks Market Neutral A is rated below average in minimum initial investment among similar funds. It is presently regarded as number one fund in holdings turnover among similar funds reporting about 0.07 of Holdings Turnover per Minimum Initial Investment. The ratio of Minimum Initial Investment to Holdings Turnover for Zacks Market Neutral A is roughly 13.89 Minimum Initial Investment refers to minimum amount the fund family or category will require an investor to deposit to acquire the very first position in the fund or to open an account. In other words, Minimum Initial Investment is a guarantee that any investment from a purchaser of a fund meets the minimum requirement of the fund.
Fund managers put minimum investment restrictions on fund investments in order to allow the fund to function properly. Minimum restrictions allow fund managers to regulate cash flows of the fund, while guarding it from random trades that may negatively affect fund strategy.Holding Turnover is calculated by adding up all the transactions for the year, dividing it by 2 and then dividing it again by the fund total holdings. Holding Turnover is the rate at which funds or ETFs replace their investment holdings on an annual basis. In other words it measures how quickly a fund turns over its holdings during the fiscal year.
Investor can think of Holding Turnover as percentage of a fund's assets that have turned over in the past year. Typically, a high annual turnover ratio implies that fund managers made a lot of buying and selling. The higher the annual turnover, the higher the expense ratio for the fund.
Zacks Market Neutral Holdings Turnover Comparison