Return on Investment

The performance report does not seem to give the per annum % return on portfolio. Rather it gives the total performance without consideration to how long you have had the shares. For example if I have $50K of shares I have had for 11 months, I might see a 7% return; so far so good. If I now buy another $50K of shares, then my overall return will be reported as dropping to 3.5% on the day that I buy them. This number is not really much use for anything.

There doesn't seem to be a way of measuring actual returns averaged over time and value.
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  • Hi Nick,

    As you have noticed, the performance report does not annualise returns where the investment period is less than one year.

    This is done to primarily to prevent extrapolation of short term price fluctuations, eg a share that increased by 5% in the first day of ownership would be reported as 1800% which isn't very meaningful.

    In Sharesight the return is only annualised where the average holding period is more than a year. We've found that on balance this provides the most useful and intuitive result, however ultimately either approach to annualisation has it's limitations.

    You'll find that on any longer term holdings the result is annualised as you are expecting.
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