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Mutual Funds - Portfolio Overview

Updated this week

Previously, your returns could look inflated or misleading when you deposited or withdrew money. This didn’t show the real performance of your investments. That’s why we’re switching to a better method: Time-Weighted Return (TWR).

TWR is a standard industry method that removes the impact of cash flows (deposits and withdrawals). It shows pure investment growth, not distorted by how much or when you add or remove money.


How TWR works

  1. Break into sub-periods: Each time you add or withdraw money, a new sub-period begins. This ensures returns for each segment reflect only performance, not cash flow.

  2. Calculate return for each period: Measure how much your investments changed during each sub-period.

  3. Chain the results: Multiply the returns of all sub-periods together to get the overall TWR.

Remember the colours in the app:

  • Green Line = Investment performance

  • Purple Line = Your net invested money


Notes

  1. The Invested amount in the app shows the total amount of money you have currently invested, not the performance of your investments.

  2. The Invested amount might be negative in case you withdraw more than you have deposited in total (if you have a profit on your investments).

  3. TWR represents the performance of your investments in the market over time; it does not represent your actual gain or loss.

  4. The Returns section in the app represents the change in value from what you have originally invested to what you have now (i.e., your personal profit).

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