Introduction to Icarra Portfolios
Before creating your first portfolio it is important to understand the differences between the two types of Icarra portfolios: Simple Portfolios and Detailed Portfolios.
Simple Portfolios
Simple portfolios are the easiest type of portfolio to create and maintain. Creating a simple portfolio is as straightforward as entering a list of transactions for stocks you would like to hold. All transactions are specified using dollar amounts. Here's an example:
3/5/1997 buy $2500 of MSFT
3/10/1997 buy $1200 of BRK-B
3/12/1997 buy $800 SBUX
6/18/1999 sell $2000 of MSFT
6/18/1999 buy $2000 of WMT
Here is the above Sample Simple Portfolio entered as an actual Icarra portfolio. Take a look at all of the possibilities that are available: current holdings, performance tracking of various types, charts and so on.
Simple portfolios are best used to keep track of hypothetical portfolios. Here are two other hypothetical simple portfolios: The 2005 BofB and Pencils Mutual Fund. For keeping track of real life accounts you will find the extra flexibility that Detailed Portfolios provide to come in handy.
Detailed Portfolios
Detailed portfolios allow you to track your portfolio at a more detailed level than simple portfolios. Detailed portfolios require more work to maintain than simple portfolios because they support more transaction types. They are most useful when tracking real life portfolios. If all transactions are accounted for a detailed portfolio will match its real life counterpart to the penny. The following table summarizes the differences between simple and detailed portfolios:
| Detailed Portfolios | Simple Portfolios | |
|---|---|---|
| Cash Position | Yes. Cash may be deposited and withdrawn at any time. Cash transactions must be correct for accurate performance calculations. Cash positions may have interest added to them. | No. All buys result in a deposit of the same cash amount while all sells result in an identical withdrawal. |
| Expenses | Yes, all transactions may have an optional expense. Expenses are considered in performance calculations. Expenses, such as account maintenance fees, may be added at any time. | No. All transactions have no expense. |
| Buys and Sells | Uses number of shares and transaction amount. For example, purchasing 46 shares of stock ABC for $2000 results in a price per share of $43.48. | Only uses transaction amount. Number of shares is determined by the closing price of the stock on the date of the transaction. |
| Dividends and Splits | Must be entered manually. | Dividends are automatically re-invested in the stock giving the dividend. Positions are automatically calculated after splits. |
Here are two examples of detailed portfolios: Scottrade Funny Money and Spicy Beg01.
Combined Portfolios
There is a third type of portfolio called a combined portfolio. A combined portfolio allows you to combine any number of other portfolios into a single portfolio. Combined Retirement is an example of a combined portfolio.
If you have any more questions about creating portfolios feel free to visit the Portfolio Help forum.