I've been sifting through some forum posts, but none address this problem directly, so I thought I'd try my luck at posting.
Basically my situation is as follows. I'm attempting to calculate my returns on the year, where part way through the year, more funds have become available. For example (figures are fictitious):
Starting funds (July 1st): $100k
Extra funds (Oct 1st): $20k
Extra funds (Mar 1st): $20k
Final value of portfolio (incl. cash): $180k
Given the 20k in October and March weren't available for the full year, how do you actually calculate the return on that? My thought was to scale it for the period of time the funds were available in comparison to the full year... but that doesn't really work out either.
How would you calculate it?
Thanks in advance for the help.