How is Average Annual Return handled for cash?
No Average Annual Returns are shown on the Investing Portfolio page. Is income from cash included in the account return? Does it matter if a money market fund is designated to show or not show as cash? Are sold investments handled as they should be? Are there any known peculiarities that would cause these calculations to deviate from an "all-in" internal rate of return?
Answers
-
If you have those funds recorded in Q as "Cash", there is no return on them. $1 at the start of any period is $1 at the end of that period.
If you have the funds recorded as a MMF, then it's calculated the same as any other security.
Q user since February, 1990. DOS Version 4
Now running Quicken Windows Subscription, Business & Personal
Retired "Certified Information Systems Auditor" & Bank Audit VP0 -
When the Settlement fund in your account earns interest, how is it shown in the register?
I think if it is recorded as a dividend, then the IRR calculation will treat it as a Return and it will be included in the account's Avg Annual Return.
If it is recorded as a Deposit, It will add to both the investments and returns and will not affect the performance.
It is easiest to see this if you look at the Investment Performance Report and check the Show Details box. This will show how each transaction affects the calculation.
QWin Premier subscription0
