Price Source for Mutual Fund and Stock

[Yogesh Agrawal]

> > > > 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.
> > >
> >
> >
> > I understand this charles,  but  my question is how can I get 1000
> > instead of weighted average 1160.42, because, when you move from one
> > financial year to another
> > you balance sheet should show the amount of the investment that you are
> > carrying over, not the weighted average.
> >
> > It is same as you calculate the capital gain, you don't calculate it on
> > the basis of weighted average, but you calculated in on the actual price at
> > which you
> > bought the shares and the price at which you have sold it.
> >
>
> Why would you only carry over the basis? Wouldn't you carry over whatever
> their market value was at the end of the financial year, including
> unrealized gains? (Just curious.)
>

No I don't want to include unrealized gains, because  in India when you
prepare the balance sheet it is as per basis, not on the current market
value.

>
>
> In any case, the balance sheet report only estimates the value as of the
> report date. It isn't designed to show the basis.
>
>  -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
> > > > > > >
> > > > > > _______________________________________________
> > > > > > gnucash-user mailing list
> > > > > > gnucash-user at gnucash.org
> > > > > > https://lists.gnucash.org/mailman/listinfo/gnucash-user
> > > > > > -----
> > > > > > Please remember to CC this list on all your replies.
> > > > > > You can do this by using Reply-To-List or Reply-All.
> > > > > >
> > > > >
> > > > >
> > > >
> > >
> >
>