I was about to invest in a mutual fund that is doing extremely well. I would think that this means all the holdings of the fund have been turned over within one year. In a word, no.
Turnover is a slippery figure that measures the amount of trading a manager does.
Technically, the turnover ratio is the lesser of purchases or sales, divided by average monthly assets. Funds with high turnover do tend to have lower after-tax returns. The chart shows some funds with the highest turnover ratios, and their three-year returns, before and after taxes. 2 Dividends, gains reinvested through July 31. Many of them have low turnover rates, but not all.