Price Source for Mutual Fund and Stock
Charles Day
cedayiv at gmail.com
Wed Mar 26 20:12:29 EDT 2008
On Wed, Mar 26, 2008 at 4:35 PM, Yogesh Agrawal <agrawaly 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 32.396shares 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.
>
> >
Interesting. It seems like you would be understating your assets each year -
perhaps significantly. Imagine if you'd bought those shares 100 years ago
and still accounted for them using the original price!
Anyway, it looks like the balance sheet report doesn't support your method
of calculation.
If you want to force it, put a price of 30.868 in the price db on the report
date. Then use the "Nearest in time" option. Of course, this is just a
"fudge" that allows you to report any value you want.
-Charles
> > 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
> > > > > > > >
> > > > > > > _______________________________________________
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> > > > > > > -----
> > > > > > > Please remember to CC this list on all your replies.
> > > > > > > You can do this by using Reply-To-List or Reply-All.
> > > > > > >
> > > > > >
> > > > > >
> > > > >
> > > >
> > >
> >
>
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