Personal Finance

How do you track your mutual fund investments?

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  • Aug 18th, 2011 1:53 am
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Deal Addict
May 11, 2003
2842 posts
720 upvotes

How do you track your mutual fund investments?

I investment in a fund that provides disbursements. The disbursements are then re-invested. In light of this, how would you track it?

For example:

Assume that the price per unit does not change over time.

On Day 1: I purchase $5000 of Mutual Fund Blue. This results is a book value of 500 units at $10 each. Total investment: $5000, units: 500, bookvalue/unit: $10, total bookvalue: $5000
On Day 50: I get a disbursement of 3 units, which are automatically reinvested. Total investment: $5000, units: 503, bookvalue/unit: $10, total bookvalue:$5030

So my question is this: When determining profit or ROI, would you use the $5000 initial investment or the total bookvalue (which included a $30 disbursement and re-investment).

Part of the issue is that my bank/investment house doesn't list the initial amount invested. So instead of showing the $5000 initial investment, it only shows the # of units and the bookvalue. After an automatic re-invest, this will suggest that invested amount (units x bookvalue/unit) is higher than it really is.
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2 replies
Newbie
Oct 3, 2010
28 posts
2 upvotes
Depends on what the $30 distribution contained. If the $30 was all income, then your new cost would be $5,030. If the $30 was return of capital, then your cost would still be $5,000. If it was a mix (say $20 income, $10 ROC), then your new cost would be $5,020
Deal Fanatic
User avatar
Jan 19, 2005
5203 posts
2486 upvotes
Vancity
I use the portfolio manager on globefund.com. It keeps track of cost basis, distribution, etc.
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