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Portfolio Cost value Graph problem

Questions on using, creating, or understanding data in Fund Manager graphs.

Postby gbfabiani » Wed Jul 07, 2021 10:17 am

I am confused by the graph Cost value I see in my portfolio, and I need some advise .

Let me describe where I am lost:
I have one main portfolio for each bank, and inside it I have some sub portfolios , say one for stocks one for bonds, one for the bank account. Each investment transaction in every sub-portfolio moves automatically the bank account within the bank portfolio.
Now, one of these subportfolios had 6 investments (funds) that I bought the same day in 2011. I can switch between these funds telling the bank to do it, so overtime I moved amounts from (example) Us Stock fund to European Stock Fund within this same portfolio.

To account for above change , I was "selling" X shares of one investment to its price of the day ,and buy shares of another one , again Y shares at its price of the day. On the bank account , the 2 amounts are the same, no effect on the balance . Of course , no effect on the total investments value either.
However, if I run Graph Portfolio cost -value, the black line of the cost changes ( it increases ) . Every time I did switch some position, I saw no change in the original invested value on the Reports, but at the transaction date I saw the cost in the graph going up. On top, it doesn't go up by a number corresponding to the switch value , but a smaller one .

I wonder if the graph do calculate the difference between the original price of the shares and the price of the day I do the switch , I don't know.
As a conclusion, I never changed the original investment, and if I run a portfolio report between 2011 and today I see the original amount invested , but on the Graph I see the line going up and up, so that at the end it is quite close to the final value , while the latter is much more as the investments performed fairly well since 2011

Hope I explained myself somehow !

Any suggestion ??
Thanks !!
Giovanni
gbfabiani
 
Posts: 71
Joined: Wed Feb 08, 2012 7:26 am

Postby Mark » Wed Jul 07, 2021 11:42 am

Hi Giovanni,

Note, there are 2 cost modes for this graph, historical or current. It sounds like you are plotting with the current cost mode. So, if you move money between funds, it is plotting the cost of the currently owned shares, which will have increased from the time of your initial purchase if the shares increased in value. From within the graph, choose "Help / Help on Graph..." for a more detailed explanation. To switch to historical cost (which it sounds like you are expecting), turn on "Graphs / Options / Historical Cost".
Thanks,
Mark
Fund Manager - Portfolio Management Software
Mark
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Location: Chandler, AZ

Postby gbfabiani » Wed Jul 07, 2021 11:04 pm

Mark, perfect answer, as always !!
regards
Giovanni
gbfabiani
 
Posts: 71
Joined: Wed Feb 08, 2012 7:26 am


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