zhow do I just put in monthly balances?

Diane Neptune's Avatar

Diane Neptune

03 Jan, 2022 07:11 PM

I want to be able to track my investments but I do not want to add all the funds individually or connect online to get my updates. Is there a way that you can just input manually the balances at the end of a month or quarter? if so how do I make that happen?

  1. 1 Posted by Diane Neptune on 03 Jan, 2022 07:22 PM

    Diane Neptune's Avatar

    I saw how I can edit but I can not see a transaction history.

  2. 2 Posted by Diane Neptune on 03 Jan, 2022 07:29 PM

    Diane Neptune's Avatar

    Is there a tutorial available?

  3. 3 Posted by Stuart Beesley ... on 03 Jan, 2022 07:31 PM

    Stuart Beesley (Mr Toolbox)'s Avatar

    Best way is to use an ‘Asset’ account, NOT an investment account and then each month enter a ‘movement’ txn which is the difference between last months balance and this months balance. Typically this would be a plus or minus value charged to an asset ‘gain’ or ‘loss’ category.

  4. 4 Posted by dwg on 03 Jan, 2022 07:44 PM

    dwg's Avatar

    I'm a fellow user.

    You cannot just enter a balance into Moneydance like that, being an accounting based program it will not work like that.

    I do employ a technique in an Investment account that yields that sort of result however. Best explained through an example.

    Suppose you have investments in three master funds. A master fund being the type of fund that in turn invests in other (usually wholesale) funds. Each master fund is thus invested in a variety of wholesale funds. For a broad based balanced portfolio there could be a substantial number of wholesale funds, 20 or more would not be uncommon in a reasonable size portfolio.

    It may well be impractical to even to try to maintain the full data for all these investments – the data may not be readily available or it may require a considerable amount of manual handling, especially when you consider you may change the mix of funds, perform re-balancing, handle re-investments etc.

    In such a situation you may decide to just maintain each master fund at the total level within Moneydance and use Moneydance to give a guide to the overall performance of the funds as a total and to use other tools outside of Moneydance to analyze the performance of individual funds.

    The approach we are going to take is to manage the portfolio at the master fund level as if it was just one fund. This will require us to derive some data based on real information that should be readily obtained. Some of the techniques we will use are similar to how individual funds arrive at their quoted prices.

    Your initial investment will be a buy. You may have a statement that shows the amount and units in each underlying fund or it might just show a percentage split. For the way we are going to manage the investment all we need to know is the total amount. We are going to assign a “price” at the total fund level of $1 per unit (share) so the number of shares equals the total purchase price.

    After setting the investment up this way only three events have to be accounted for:

        • Depositing more money into the fund.
        • Withdrawing money from the fund.
        • Changes in the total value of the funds.

    Moving money around the various wholesale funds is not relevant, neither is re-investments, changing which funds we have invested in etc.

    In this example we are updating values monthly.

    So if all that has happened in the month is a change in value of your total investment then the current value, which you should be able to obtain from the fund, usually online, divided by your "number" of shares gives you a new value per share which you enter as a new price each month.

    If you add or withdraw money you get the value of the fund just before the event to update the price then a division of the amount of the investment added or withdrawn by this price gives you the number of shares (units) you need to use to perform the buy or sell of the fund within Moneydance.

    You are thus deriving the number of units you hold and the price of each unit based on the value of your investment at each point in time. The goal is to update the total value of the investment and we are using derived unit prices and number of units to arrive at this.

    To make it easier you can create a spreadsheet with the logic embedded so you just have to enter the relevant data you obtain into it and get the calculated data you need for Moneydance, the spreadsheet is not a complicated one.

    Taking this approach there are likely to be some rounding errors, but the quoted total valuation of the funds is an approximation in many instances as in many cases underlying fund prices could be as at a different date so for our purposes the estimation is close enough. It has been noted that some fund prices may even be set only weekly and buys and sells only occur on that day after the price has been set. Extensive usage has shown the estimation is within $1.00 of the fund quoted value at any point.

    Another approach is to set it up as an Asset Account and just use payment and Deposit entries each month to adjust the total value of the fund

    What method to use is determined by what you want to get out of the system in terms of information. I use the first method as I can see things like value growth.

  5. 5 Posted by Diane Neptune on 04 Jan, 2022 02:18 AM

    Diane Neptune's Avatar

    Thank you! I think this is way over my head!

    Thanks,
     
    Diane

  6. 6 Posted by Diane Neptune on 06 Jan, 2022 03:55 PM

    Diane Neptune's Avatar

    Thank you!

    Thanks,
     
    Diane

  7. Maddy closed this discussion on 06 Jan, 2022 04:05 PM.

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