How To Track Returns on Investments

Know where you stand with your investments.

No matter what types of investments you choose, it is critical to track your performance. Simply relying on the stated performance of a given mutual fund or stock and assuming that your return is the same can be very dangerous. A number of factors, including timing and reinvestment decisions, can affect your return, so tracking the actual amount of money you made is the best way to stay on track.

Things You'll Need

• Investment statements
• Calculator or spreadsheet program

Instructions

1. Find your most recent investment statement, then find the statement from a year prior. Locate your beginning balance.

2. Add any automatic investments or additional investments you made during the prior year. For instance, if you transfer $100 a month from your bank account to a given mutual fund, you would add $1,200 to the beginning balance to get your starting point.

3. Locate the current value of your holdings as shown on your most recent statement. Subtract the total you invested from the current balance. For instance, if you invested $10,000 and the current value is $12,000, your gain is $2,000.

4. Divide the amount of your gain by the amount you invested and multiply the result by 100 to get your percentage gain. For instance, if your gain is $2,000 and your total investment is $10,000, your gain is 20 percent.

References

• Fat Pitch Financials: Calculating Investment Returns