Editing Index fund (section)

===Lower turnovers===
Turnover refers to the selling and buying of securities by the fund manager. Selling securities in some jurisdictions may result in [[capital gains tax]] charges, which are sometimes passed on to fund investors. Even in the absence of taxes, turnover has both explicit and implicit costs, which directly reduce returns on a dollar-for-dollar basis. Because index funds are passive investments, the turnovers tend to be lower than actively managed funds.