Chapters
Chapters
Chapter 02
Returns and time
Did investments earn more, or did you put more money in? Follow changing balances, dated additions and the purchasing power left after prices rise.
Next lessonPrices, payments and total return
—All materials read
- Prices, payments and total returnFollow a payment out of the fund and back into units without counting it twice.Read
What stays invested becomes the base for the next return.
- Compounding and purchasing powerFollow the changing investment base, then convert a money return into purchasing power.Read
A result now has a price basis. Next, let returns vary and see what an average can tell you about the changing balance.
- Average returns and the path your money takesCompare two annual paths with the same finish, then measure recovery from what remains.Read
Now let money enter or leave between those returns.
- Contributions, withdrawals and investment returnsReconcile nominal and real money, separate external flows and identify the records still needed for a percentage return.Read
Keep the nominal/real reconciliation and the flows still needing dates. Next, identify the businesses, borrowers and fund rights behind the measured result.
Next chapter: What a portfolio holds