The negative 34.6% return for your real estate fund does not appear to be correct as the ending number is the highest number on the chart.
Flexo
· 1 month ago
David: The Real Estate Fund is one that I am investing in throughout the year. So the increase in the overall value is mainly due to my investments into the fund. In other words, I kept adding more as the investment value continued to fall. So even though the *total* value of the account has increased, the price of a share has decreased.
The average annual rate of return is an internal formula that takes the cash flow into account. On January the price of one share was around $10, on October 2, the price was about $7 per share. I kept buying throughout the year as the price decreased, so my shares from the beginning of the year have performed worse as of 3Q than the more recent purchases. The AARR formula takes that into account.
David M
· 1 month ago
Flexo,
Thanks for taking the time to reply! in detail!
Shadox
· 1 month ago
Like it me, it looks you continued to invest into the stock market crash. Sure paid off.
I have noticed some problems with Quicken's calculation of return. For example, it considers new investments during the calculation period as gain. Did you notice the same thing or am I doing something wrong? I completely ignore the return calculations in Quicken because of this problem.
Flexo
· 1 month ago
I don't think I've come across major problems with the calculation but I'll run a test with a simple IRR when I get a chance.
All Comments
The average annual rate of return is an internal formula that takes the cash flow into account. On January the price of one share was around $10, on October 2, the price was about $7 per share. I kept buying throughout the year as the price decreased, so my shares from the beginning of the year have performed worse as of 3Q than the more recent purchases. The AARR formula takes that into account.
Thanks for taking the time to reply! in detail!
I have noticed some problems with Quicken's calculation of return. For example, it considers new investments during the calculation period as gain. Did you notice the same thing or am I doing something wrong? I completely ignore the return calculations in Quicken because of this problem.