Measuring Returns

Moose_ said:

Hi All,

Each month for the next few years I plan on purchasing a parcel of shares. My question is how do I measure my annual performance against the index when I'm constantly growing the portfolio with new acquisitions?

Thanks
Moose

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Smurf1976 said:

I’m not suggesting it’s the only way but the method I use is to simply base it on the total funds allocated to share investment regardless of whether it’s actually invested in shares or is siting as cash.

Eg $100 available for investing with $70 in shares and $30 in cash. If I wanted to calculate a % return over whatever period of time then I’d base it on the $100.

Reason = it’s simple, easy and takes account of the fact that cash is still an asset.

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Moose_ said:

Each month for the next few years I plan on purchasing a parcel of shares. My question is how do I measure my annual performance against the index when I'm constantly growing the portfolio with new acquisitions?

Click to expand...

Moose_ said:

Hi All,

Each month for the next few years I plan on purchasing a parcel of shares. My question is how do I measure my annual performance against the index when I'm constantly growing the portfolio with new acquisitions?

Thanks
Moose

Click to expand...