Mutual fund companies urge their clients to buy and hold

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Many mutual fund companies urge their clients to buy and hold. However, the average turnover rate of an actively managed fund is 85% meaning that mutual funds 85% of their assets in a year. Why do mutual funds have such a high rate turnover? Why do they urge clients to buy and hold when they don't seem to buy and hold? Would you rather invest in an actively managed mutual fund or an index fund? Give a detailed answer

Reference no: EM13972463

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