How does Trustnet Portfolio calculate yearly profit?

RomfordNavy

SonOf wrote: »

The 10.8% will be if you invested a single amount on the date in question a year ago.


Trustnet states the timescale for the investment period. It will be correct for that period. It has no way to know if you have used different dates although you could enter each one manually if you are really bothered (and you shouldnt be).

The point being is that I have entered each holding manually using the correct date of purchase, it just seems that Trustnet ignores these dates.

Thrugelmir

RomfordNavy wrote: »

I am beginning to think that perhaps Trustnet does not actually take account of different purchase dates and just assumes that the whole portfolio has been held for all time.

Be very difficult to as they would a myriad of permutatations. Missing the best 10 trading days of the year has been shown to deliver returns at least a quarter to a third less. Hence why investing lump sums is considered the better option than drip feeding.

bowlhead99

RomfordNavy wrote: »

The point being is that I have entered each holding manually using the correct date of purchase, it just seems that Trustnet ignores these dates.

Its performance reporting doesn't try to work with dates of buys and sells and whether you've rebalanced from a different allocation during the course of the year. If you're trying to input your real current portfolio you can add in the individual purchases one at a time, or just the grand total of what you have, but it doesn't accept negative transactions or see dividend cash (unless you add the cash manually) so you can't really mirror the evolution of a portfolio.

Essentially it just looks at the portfolio you have now (eg of 100 shares of this and 273.8 units of that and 17 units of the other) and doesn't care if you bought 1 share a week for the last couple of years or bought them all yesterday. It just says you have a portfolio which is currently (e.g.) 20% this, 50% that, 30% the other; and looks at what would have happened to the components of that (now, 20:40:30) investment over time based on their market prices moving over time to end up with where they are now.