(by Nick Band)

New strategy of faster fund processes is being taken by the professionals as buy-and-hold strategy losses its urgency.

Now U.S. mutual funds hold stocks for no longer than 10 months, analysts say. Faster trading will definitely raise returns, they add.

Really, annual turnover of a fund’s portfolio is climbing its highs within an average 118%, rising slowly from 1950’s record low of 13%.

On the other hand, shorter holding times and higher turnover can lead to heavier trading costs, such as brokers’ fees and administration, which reduce returns.