Mutual Funds Cap Gains or Dividend Reinvestment

[rwshep2000.3129421 at bloglines.com]

Aaron,

Yes, I agree with your formula.  From the perspective of, "how much
did I make from my original investment," however, you need to exclude the
reinvested shares from your basis cost (cash in).

In any case, am I correct
in my belief that there is no existing report that will do what you describe?
 Unless I am doing something wrong, the Advanced Portfolio shows only appreciation
of share price.

Thanks,

Bob S.


--- Aaron Gaudio <prothonotar at tarnation.dyndns.org
wrote:
On Wed, 2004-09-01 at 00:59 +0000, rwshep2000.3129421 at bloglines.com

> wrote:
> > I want to know if it is possible to get
> > GnuCash to  show
my reinvested cap gains/dividends as part of my ROI (gain).
> >  Obviously,
if a fund has capital gains and dividends, it is making a return
> > on investment,
and that is part of the "gain" that I need to track, preferably
> > in the
advanced portfolio report.
> 
> IMO, whether the cap gains/dividends are
reinvested or not should be
> irrelevant for an ROI calculation. The return
is the cap gain/dividend
> when it is distributed. Reinvestment is simply
an immediate purchase of
> more shares using that return. So, don't worry
about reinvestments, the
> ROI formula (for a single commodity) should be
something like:
> 
> (CurrentValue+CashOut+CapGainsPaid+DividendsPaid)/CashIn-1.

> 
> (keep in mind that if the cap gain/dividend is reinvested, then it
will
> be counted in CashIn and CurrentValue).
> 
> -- 
> Aaron Gaudio
<prothonotar at tarnation.dyndns.org>
> 
>