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Sell fund / buy fund new portfolio gain goes way down?

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Posted by David Vaughn on September 13, 2005 at 15:20:44:

If you were to sell a fund in a portfolio and reinvest in a new fund within the same portfolio. Why does the % gain for the portfolio go down as if the portfolio hadn't seen the gains that it already had? Currently, in fund manager I treat the transaction just like it happens.. ie sell one position, buy another from the sold position cash value.

Thanks!

Dave



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