How are transactions managed by The Investment Performance Calculator?
A. The following transactions may be entered into The Investment Performance Calculator: Contributions, Withdrawals, and Dividend/Distribution Reinvested. Cash Contributions and Withdrawals Contributions and Withdrawals are used to enter any event that affects the value of an investment by creating a cash flow into or out of the portfolio. Dividends or interest paid and taken out of the portfolio must be entered as a withdrawal. Dividend/Distribution Reinvested Dividends/Distributions Reinvested may be entered by users who want to track the cost basis of an investment and any potential taxable events. Since these amounts are reinvested and stay in the portfolio they are not treated as a cash flow when measuring investment performance. They instead represent an appreciation in the value of the portfolio and must be taken into account when entering the Historical Value of the investment. Other Transactions – Accrued Income Accrued income should be accounted for when entering the monthly
