Topic: Performance Option on Chart - What is it exactly?

This is not a suggestion, but rather a question.  ... and maybe a suggestion too.

On the old Icarra.com there was an option to select Absolute, Time Weighted and Money Weighted (IRR) performance calculations.

On the new Windows application, you can select Performance in the chart, but I cannot find any documentation on what type of performance this is.

I have entered all my re-invested dividends and it takes these into account, but I'm not sure what performance is being charted - without building a spreadsheet to check, I'm guessing that it is showing Absolute performance.  I'm using Icarra2 because I did not want to build and maintain my own spreadsheet.

The option that I would really like is the Money Weighted (IRR) - to me that makes the most financial sense to compare performance among investments.

Thanks!

Re: Performance Option on Chart - What is it exactly?

lentzsa wrote:

This is not a suggestion, but rather a question.  ... and maybe a suggestion too.

On the old Icarra.com there was an option to select Absolute, Time Weighted and Money Weighted (IRR) performance calculations.

On the new Windows application, you can select Performance in the chart, but I cannot find any documentation on what type of performance this is.

I have entered all my re-invested dividends and it takes these into account, but I'm not sure what performance is being charted - without building a spreadsheet to check, I'm guessing that it is showing Absolute performance.  I'm using Icarra2 because I did not want to build and maintain my own spreadsheet.

The option that I would really like is the Money Weighted (IRR) - to me that makes the most financial sense to compare performance among investments.

Thanks!

Absolute has been renamed to Profit which I believe makes more sense to the new user.  Performance is time weighted returns.  Would it be easier if I included TWRR in the performance name to make it more clear?  I'll also look into adding tooltips that makes it more clear.  Perhaps the chart options should read like this:

Total Value
Profit
Return (Time Weighted)
Transactions

Performance options will read this:

Total Value
Profit
Return (Time Weighted)
Return (Internal)

Is that more clear?  I'm horrible at naming things and I'm very much open to suggestions.

Jesse

Re: Performance Option on Chart - What is it exactly?

Jesse -

Yes, I think your new suggested naming conventions will make it more clear.

If you are targeting the new user understanding, it is probably better to avoid the abbreviations and use the spelled out version.

Thanks!

Re: Performance Option on Chart - What is it exactly?

Jesse -

Another question:  Are the results of the [using the new designations]  "Return (Time Weighted)" and Return (Internal) in the charts annualized?

THanks!

Re: Performance Option on Chart - What is it exactly?

Yes.  The values are annualized when held for longer than one year.  Values that have been held for less than one year are not annualized.

Would it be useful to add an option to show non-annualized (total) returns?

Jesse

Re: Performance Option on Chart - What is it exactly?

Jesse -

This is my opinion.

What Icarra2 graphs are showing are OK.  You just need to add some notes/documentation to enable your users to understand what is being shown.

Thanks!

Re: Performance Option on Chart - What is it exactly?

Well, interesting forum! I was thinking about taking help of a good financial advisor before I take any step further for financial investments. I also want to have complete detail regarding Cost Inflation Index. Anyways, this was a nice and helpful information.