India Fund Performance Compared to Index -Sensex(in %)
* move mouse over the graph to view data on any particular date.
[+-] Asset Allocation Chart

* Beta version, started on Jan/2010 as an trial. Currently contains very limited data. Read more about this chart in the post

Thursday, March 20, 2008

How is portfolio performance calculated?

It is important that we calculate the portfolio performance in a standard and consistent way. Looking at the gains or loss in just few investments will not provide a complete picture of how the portfolio as a whole performed over a long period of time and it certainly does not provide accurate numbers since the investment amount keeps changing and also involves different types of costs.

From last August I have adopted the calculation method based on the following article on

It is providing a way to accurately calculate the performance. All calculations are based on Total portfolio value, the individual trades are NOT taken into consideration as the value will be part of either Total cash holding or Total Current Holdings value.

Details of the calculations:
1. Calculate current total portfolio value which includes securities holding and cash holdings e.g: Rs. 1,00,000/-.
2. Pick a per unit value e.g: Rs. 100/-
3. Calculate the number of units. e.g: 1,00,000 /100 = 10,000 units.

That is all we need!!

All rows are marked with one of the following: 'Status' - means just recording the values. 'Purchase' - fresh infusion of cash & 'Sale' - means cash was taken out of the portfolio.

Status: Status is added once a week, mostly done on Friday evening. You will need current holdings value, total cash holding & Sensex. Remaining columns like 'performance %s' will be calculated automatically.

Addition of new fund: An infusion of fresh cash to portfolio is considered to be purchase of n units at current price. i.e: Total fresh infusion amount/Current unit price. This will increase the number of units, but leave the current unit price unchanged.

Taking cash out of Portfolio: Taking fund out of the portfolio is considered to be reducing the number of outstanding units.

I typically do the calculation on every weekend. And all the values in the spread sheet except the portfolio value and cash are calculated by the spread sheet itself based on the formula already entered. I also record the index values so that we can see how our portfolio performed compared to broader indexes. Since we are working off of the per unit value, any addition of Added advantage is that since we are taking the total portfolio value (holdings + cash), all the trading costs will be included in it without need for any special calculations. It may looks like lot of work, but in fact it is very easy. Believe me, I have been doing it for couple of months now!! Takes only around 10 mins each week!!

Spread sheet with sample performance calculations:


Anonymous said...

Good day !.
might , perhaps curious to know how one can make real money .
There is no initial capital needed You may commense earning with as small sum of money as 20-100 dollars.

AimTrust is what you haven`t ever dreamt of such a chance to become rich
AimTrust incorporates an offshore structure with advanced asset management technologies in production and delivery of pipes for oil and gas.

Its head office is in Panama with offices around the world.
Do you want to become a happy investor?
That`s your choice That`s what you desire!

I feel good, I started to take up real money with the help of this company,
and I invite you to do the same. It`s all about how to select a proper companion who uses your money in a right way - that`s AimTrust!.
I make 2G daily, and my first deposit was 1 grand only!
It`s easy to join , just click this link
and lucky you`re! Let`s take our chance together to get rid of nastiness of the life

Fire Lance said...

Gia Thuận Shop địa chỉ hàng đầu chuyên cung cấp lồng đèn trung thu giá sỉ tốt nhất hiện nay trên thị trường. Ngoài ra chúng tôi còn cung cấp nhiều dịch vụ khác như dịch vụ in ấn. Trong đó phải kể đến dịch vụ in giấy khen giá rẻ tphcm... Chúng tôi còn cung cấp các loại đồ chơi khác nhau, nếu như đồ chơi, quà lưu niệm quá đặc biệt thì bạn có thể Pre order với chúng tôi.
Hãy đến với chúng tôi để được phục vụ tốt nhất.