High portfolio turnover may be an indicator of a lack of conviction in investment decisions and momentum-following behaviour, neither of which is likely to be in the institutional investor’s best interests in the long term, especially as an increase in turnover raises the costs faced by the investor and can influence systemic risk.
Féadfaidh láimhdeachas ard punainne a bheith ina léiriú ar easpa cinnteachta i gcinntí infheistíochta agus in iompraíocht leanta móimintim, agus níl ceachtar den dá chleachtas sin dóchúil chun leasa is fearr na n-infheisteoirí institiúideacha san fhadtéarma, go háirithe sa mhéid go n-ardaíonn an láimhdeachas sin na costais arna dtabhú ag an infheisteoir agus is féidir leis tionchar a bheith aige ar riosca sistéimeacha.