Seldom we have our all investments at one platform. You must have invested in some mutual funds from AMC sites or from 3rd party MF app/portal. There is chance you might be having more than one brokerage accounts.
Calculating returns in this scenario gets difficult. You have to maintain common portfolio on sites like moneycontrol, valueresearchonline, et portfolio, Google sheets. This is a great way to track investments but it lacks tracking of other investment charges like brokerage, STT, DP charges, stamp duty,etc which happens on every trade. Other charges like annual maintenance charges at broker or any subscriptions you may have bought (like smallcase), etc are not accounted in returns shown on those sites. So, what to do?
Simple! Use XIRR excel function.
If you are not aware of XIRR, gain information about it (i.e. Google it), how it is calculated in excel and perform following steps:
1. Download your bank transaction statement.
2. Find the entries in the statement, where you have transferred money to the stock broker or AMC. Put those transferred money with negative sign in new cash-flow column.
3. Scan for dividend entries in statement or entries where you have received money in bank after sell. Put those entries with positive sign in that new cash-flow column.
By now, you should have at least two columns in excel sheet, date column to identify day of transaction and cash-flow column.
4. Add last row in sheet with today's date and add total current investment value in cash-flow column with positive sign. (total current investment value = current value of stock portfolio + current value of mutual funds + any funds lying in brokerage account)
5. Calculate XIRR using date column and cash-flow column.
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