What is the best report to run for investment performance over a certain time period?

Question

The investment performance report annualizes  the performance over a year. If you see 10% over 6 months it will annualize it to 5% over a year. Also what is the best report to see performance over 3 or 5 years?

Jim_Harman · Answer

Actually if an investment is up by 10% over 6 months, the Investment Performance Report will annualize it to about 20%. The IRR calculation assumes that the performance will continue at the same rate for a full year.

One way to see YTD performance using the Investment Performance report is to set the end date to 12/31 or select Yearly and Current year as the date range.. The assumption here is that the performance will be flat for the rest of the year.

To see 3 and 5 year performance, you can set corresponding date ranges in the IPR or enable the corresponding "Avg. Annual Return (%)" columns in an Investing > Portfolio view.

Sherlock · Answer

The Investment Performance report does not annualize the performance the way you've described.  If you haven't already, you may want to review the built-in documentation: press F1