Price Source for Mutual Fund and Stock

[Charles Day]

On Wed, Mar 26, 2008 at 2:23 PM, Yogesh Agrawal <agrawaly at gmail.com> wrote:

>
>
> On Wed, Mar 26, 2008 at 1:05 PM, Charles Day <cedayiv at gmail.com> wrote:
>
> > On Wed, Mar 26, 2008 at 10:22 AM, Yogesh Agrawal <agrawaly at gmail.com>
> > wrote:
> >
> > > On Wed, Mar 26, 2008 at 10:08 AM, Derek Atkins <warlord at mit.edu>
> > > wrote:
> > >
> > > > "Yogesh Agrawal" <agrawaly at gmail.com> writes:
> > > >
> > > > > Hi,
> > > > >
> > > > > I am into another problem, I have bought one mutual fund over a
> > > period
> > > > of
> > > > > time, on a monthly basis
> > > > > and then I sold it partially.
> > > > >
> > > > > Here is what I have in the account register
> > > > >
> > > > > Date             No.of Unit      NAV       Total
> > > > > 12/5/2003      36.075          27.72      1000
> > > > > 01/08/2004     16.171         30.9195    500
> > > > > 02/08/2004     16.319         30.6391    500
> > > > > 03/08/2004     16.077         31.1003    500
> > > > >
> > > > > Now I have sold 52.246 (36.075 + 16.171) unit
> > > > > So I am left with 32.396 (16.319+16.077) unit
> > > > >
> > > > > I am expecting my balance sheet to show 32.296 unit for 1000
> > > > > whereas it shows 32.296 unit for 956.85 ( I calculated it is
> > > nothing but
> > > > > based on weighted average).
> > > > > What should I do to show 1000?
> > > >
> > > > When you sold did you add in the gain/loss splits as described
> > > > in the documentation?
> > > >
> > >
> > > Yes I did.
> > >
> >
> > I'm joining this discussion a bit late, but why would you expect it to
> > show 1000? The balance sheet report is probably using a weighted average of
> > all exchanges between your fund and your currency (5 exchanges in total).
> > What price did you use for the sell, by the way?
> >
>
> It really doesn't matter, at what price I sold them, it is at 46. I would
> expect it to show 1000 because, that is what my investment is.
>
> >
Your sale was of the first two lots, and 1000 is your basis of your
remaining shares. I understand that.

But the balance sheet report doesn't try to show your basis. The report
estimates the current value of your remaining holdings using the method you
select in the report options. Since you're using "weighted average", the
report values your remaining holdings based on a weighted average of all
exchanges between your fund and your currency.

Your five exchanges are:
36.075 shares @ 27.72
16.171 shares @ 30.9195
16.319 shares @ 30.6391
16.077 shares @ 31.1003
52.246 shares @ 46

Weighted average price = (qty1 * price1 + qty2 * price2 + qty3 * price3 +
qty4 * price4 + qty5 * price5) / (qty1 + qty2 + qty3 + qty4 + qty5)

The weighted average price is 35.8199, so your remaining 32.396 shares would
be worth 1160.42 according to this method.

-Charles



>
> >
> > -Charles
> >
> >
> > >
> > > >
> > > > > Thanks,
> > > > > Yogesh
> > > >
> > > > > Please remember to CC this list on all your replies.
> > > > > You can do this by using Reply-To-List or Reply-All.
> > > >
> > > > -derek
> > > > --
> > > >       Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
> > > >       Member, MIT Student Information Processing Board  (SIPB)
> > > >       URL: http://web.mit.edu/warlord/    PP-ASEL-IA     N1NWH
> > > >       warlord at MIT.EDU                        PGP key available
> > > >
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> >
> >
>