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Average Annual Returns are not correct

Unknown
Unknown Member
edited November 2018 in Investing (Windows)
I bought some units in a mutual fund early this year & while I have only held the investment for about 6 weeks it shows a 1 year, 3 year & 5 year average annual rate of return. Why is Quicken showing a rate of return for a time period when I did not own the mutual fund?

Comments

  • Unknown
    Unknown Member
    edited March 2018
    Those 1, 3, and 5 year average returns are not for the fund shares you own, but for the fund, most likely downloaded by Quicken for your information. Regards 
  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    edited November 2018
    Actually the Average Annual Return in the Investing Portfolio views is an Internal Rate of Return (IRR) calculation based on your holdings of the security. QWin 2018 shows the result of this calculation even if you did not have any shares at the start of the period. The calculation is valid but misleading if you did not hold the security for the whole period.

    In earlier versions of Quicken, the Investing Portfolio views would display N/A if you did not hold a security at the beginning of the time period. 
    QWin Premier subscription
  • Unknown
    Unknown Member
    edited March 2018

    Actually the Average Annual Return in the Investing Portfolio views is an Internal Rate of Return (IRR) calculation based on your holdings of the security. QWin 2018 shows the result of this calculation even if you did not have any shares at the start of the period. The calculation is valid but misleading if you did not hold the security for the whole period.

    In earlier versions of Quicken, the Investing Portfolio views would display N/A if you did not hold a security at the beginning of the time period. 

    Thanks. It would be way better if they used N/A. For Quicken to show a 3 year return when you have only held a fund for 3 weeks is very confusing & far from accurate.
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