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Re: Partly Paid Fund

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Posted by Mark on July 06, 2001 at 13:28:44:

In Reply to: Partly Paid Fund posted by Alec Wilkins on July 05, 2001 at 00:48:09:

: I have an number of units in a mutual fund on which I have to pay a second and a third amount in due course. The second amount has just been paid. How do I handle this. There is no increase in the number of units, just an increase in their capital value

: eg Originally I had 50000 paid as to $1 each. I just had to pay another dollar on these 50000.

: If I simply amend the purchase price it shows up as a gain in a Portfolio Performance Report

Hi Alec,
FM doesn't have specific support for this type of purchase. You could treat
this as a single purchase on the original date for the full price of all
installments. Essentially it sounds like a loan on part of
the purchase price. You could treat the loan as a separate investment with
a negative balance until you repay the balance with your subsequent payments.
If the total of all payments is more than the price that you would have had
to pay all up front you would treat the difference as interest, or a negative

Mark Beiley

Fund Manager, portfolio management software for Windows 95/98/ME/NT/00

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