Re: What is the cash account good for?

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Posted by Luca on May 21, 2007 at 22:28:01:

In Reply to: Re: What is the cash account good for? posted by Mark on May 21, 2007 at 20:41:28:

: : As far as I can tell it is just useful to keep the total value of an account more stable: it doesn't grow with buys or diminishes with sells. Or does it have some other use?

: : The drawback is that it screws up the Gain% and ROI% calculations (does it? at least they are very differnet from the other porfolio products I use).

: : Is there a way to remove the cash account influence from reports apart from dragging and dropping it out of a portfolio?

: : Thanks,
: : .luca

: Hi Luca,

: If you assign your cash account as the "default cash account", then it is automatically debited/credited whenever you buy/sell anything else in that sub-portfolio. Take a look at the sub-portfolio properties to assign a default cash account. If you do not want to include cash in your sub-portfolio, you don't have to. If you do include a cash account, it will be included in the overall sub-portfolio yields. It is time/value weighted, along with all your other investments in that sub-portfolio.

: Thanks,
: Mark
: --
: Fund Manager - Portfolio Management Software

Thanks Mark,
I think I get how to do it technically. I was just wondering about the pros and cons of keeping a cash account from an user perspecive.

What do I gain by doing it? The docs say: if you have a broker account you might want to do it, if you have a mutual fund account you might not. Why?

.luca

Replies:

• Re: What is the cash account good for? Mark 10:32:14 05/22/07 (0)