In the app, you'll be able to view the profitability of each portfolio in which you have your money invested. We show the balance invested in the portfolio, which corresponds to the amount invested plus the sum of all portfolio variations over the period. We also have the percentage equivalent to the performance of the portfolio. This percentage value considers the accumulated profitability, which is the combination of all the daily returns obtained by the portfolio over the period.
We have an example of how it is calculated below:
The client made the initial investment of US$100.00 in the portfolio. On day 1, it had a gain of US$ 1.00, presenting a daily and accumulated profitability of 1.00%. On day 2, there was a gain of US$ 3.00, presenting a daily return of 2.97%, which is calculated based on the balance of the previous day, and an accumulated return of 4.00%, which is calculated by combining the daily returns for the period, using the formula: (1 + 1,00%)*(1+2,97%) - 1 = 4,00%.
On day 3, the client made a new investment in the same portfolio of US$100.00 and had an income of US$2.00, referring to the amount that he had previously invested in the portfolio. The daily return for that day is 0.98%, which takes into account the $2.00 gain based on the previous day's balance of $104.00 plus the new $100.00 deposit made that same day. Thus, the calculation is: 2 / (104 + 100) = 0.98%. The accumulated profitability of that day is 5.02%, based on the calculation: (1+1.00%)*(1+2.97%)*(1+0.98%)-1= 5.02% .
Finally, on day 4, the daily profitability calculation follows the same line as the other days. Trying to give more details about the accumulated profitability, which also follows the same rationale as the previous days, it was considered: (1+1.00%)*(1+2.97%)*(1+0.98%)*(1+0.49%)-1 = 5.53%.
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EXAMPLE |
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DAYS |
Invested Value |
Portfolio balance |
Daily Variations |
Daily Profitability (%) |
Accumulated Profitability (%) |
|
day 0 |
$100,00 |
$100,00 |
$0,00 |
- |
- |
|
day 1 |
$101,00 |
$1,00 |
1,00% |
1,00% |
|
|
day 2 |
$104,00 |
$3,00 |
2,97% |
4,00% |
|
|
day 3 |
$100,00 |
$206,00 |
$2,00 |
0,98% |
5,02% |
|
day 4 |
$207,00 |
$1,00 |
0,49% |
5,53% |
|
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