Re: passive interests

[ Message Board ] [ Archives ] [ Search ]

Posted by Mark on July 27, 2007 at 12:37:51:

In Reply to: Re: passive interests posted by John on July 27, 2007 at 07:39:32:

: : Hi John,

: : By clicking "reinvested" you are taking the proceeds of that distribution and buying (or redeeming in the case of negative values) more shares in that investment. The distribution is always taken into account in performance calculations, no matter whether you reinvested it or not, but your investment share balance (and thus value) will be adjusted if you take those proceeds and buy more shares of that investment.

:
: Mark,
: Ok, thanks. In the particular case of the CASH investment, however, "reinvesting" and "redeeming" assume a slightly different meaning. If I "reinvest" it means that I increase the amount of cash in my portfolio, if I redeem it means that I reduce it. Is that right? So, for example, whenever I have a negative entry for my cash account (account fees, negative interests etc.) I have to click "reinvested" (by inputing a a negative value for the fee) in order for this expense to be taken into consideration in the total amount of cash I have in that portfolio. On the other side, when I have a positive entry in my cash account (dividend, positive interests etc.), I have to click "reinvested" in order for this extra cash to be take into consideration in the total amount of cash I have in the portfolio (unless I actually take the cash out of the portfolio, of course). Am I correct?
: Of course, a slightly different story is for stock or fund investments - I'm referring specifically to my cash investment.
: Thanks
: John
: (sorry for my english, it is not my mother language)

Hi John,

Yes, you are correct.

Thanks,
Mark
--
Fund Manager - Portfolio Management Software

Replies: