Re: Total portfolio %GAIN -I

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In Reply to: Re: Total portfolio %GAIN -I posted by massimo on December 30, 1999 at 01:52:54:

: : : In the last row of the report sheet "portfolio performance",
: : : I don't understand the meaning of the item "%gain-I".
: : : It seems incorrect. I think it should be "((end value/invested)-1)*100)" like all the others rows above.
: : : In my report the result value is different (much lower).
: : : Thanks for the reply.
: : : massimo

: : Hi Massimo,
: : If you select "Help/Help on Report..." while viewing this
: : report, you will see the equation used for this figure. It
: : is 100 * (end value + dist dist + redemptions - purchases)/purchases

: : Purchases is the beginning value, plus any money added into your investments.

: OK, I just saw it, but if I manually compute the totals the result value is different from as it should be. My total values (last row) are:
: invested:236,750.69; distribut:0.0; end value:273,884.08; gain:37,133.39;
: %gain-I:8.73.

: I think the %gain-I value should be 15.68 instead of 8.73

: thanks for the reply!

You cannot determine the %gain-I just from the numbers listed in
this report. Not all of the fields in the equation are displayed.
It looks like you are using the formala:

100 * (end value + dist dist - invested)/invested

'invested' is the sum of purchases - redemptions made during the report
date range. This does not include the beginning value. Also, even
if your beginning value was 0, so that it didn't matter, the invested
is purchases - redemptions, where the denominator of the %Gain-I equation
is just purchases.

This sort of gets back to one of the problems with using a %Gain number
for measuring performance. %Gain's do not factor in the length of time
that money was invested. For a more accurate measure of how well your
money performed, use the ROI yields instead.

Thanks,
Mark
--
Mark Beiley

Fund Manager for Windows 3.1x/95/98/NT

Replies:

• Re: Total portfolio %GAIN -I massimo 11:06:57 01/10/00 (1)
  • Re: Total portfolio %GAIN -I Mark 18:44:36 01/10/00 (0)