Chart for IZF
Björn Beier
Merged in a post:
Add IRR as an option in the performance graph
B
Bianca
The Home Screen performance graph currently allows switching between Return and TTWROR (True Time-Weighted Rate of Return).
TTWROR is useful because it measures portfolio performance independent of deposits and withdrawals. However, for users investing through regular savings plans or periodic contributions, it is also helpful to see IRR (Internal Rate of Return), which reflects the return of the actual invested capital over time.
Since TTWROR and IRR answer different questions (strategy performance vs. return on invested capital), it would be very useful to have IRR available as an additional option in the performance graph.
Björn Beier
Merged in a post:
Holdings list with IZF per year for visual recording of yield drain
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Parqet Nutzer
see professional PowerPoint mockup:D:D:D
If you have a few holdings, it would be good to have a list with the IZF of the holdings for the last X years and an average.
If you can still specify a desired return (e.g. 5%), you can quickly visually identify which holdings have failed to achieve the IZF target too often or especially in recent years.
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H
Hauschi
There is also the Performance Heatmap
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HD
A useful option would be to display the IRR for the last 365 days at any time. Just a few days in review of the first data points.
Almost what would be under IZF if you looked at the yield overview every day.
Florentin
You mean what happens when you log in once a day and note down the displayed IZF, right? So this data series over time.
Björn Beier
Honestly, I don't understand mathematically how this is supposed to work. Can you give an example, or make a sample graph using XIRR in Excel? Since the IRR is annualized, it will always assume extreme values for short periods of time, which will then slowly approach the average. Or again, is there already a chart for a “historical” IZF somewhere?
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Fubar
Björn Beier: I'll try an example: I'll start investing at the beginning of 2017 and go all the way to the current margin. Now I see that went pretty well overall, but I'm missing a “normalized” presentation of performance over the years (because I want to look at z.B in which years my real return was particularly high or negative).
The IRR value for 2018 would therefore have to include the deposit value already existing at the start of 2018 and transactions up to 31.12.18. For 2019, accordingly, from 1.1.2019 to the end of 2019, etc.
I wouldn't go into infinitesimally small gaps at all, but stick to calendar years. For the current year, you could use the YTD IRR.
My problem with the performance chart is z.B for the comparison with price development (inflation), that it is more like the price index series and is therefore less intuitive for me.
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Mario Watanabe
Isn't that exactly what the performance chart represents? 🤔
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Fubar
Mario Watanabe: The performance chart has no component that sets the yield in relation to the past time. If my one-time investment returns 1 5% in year and 10% in year 2, then the performance chart goes up from 5% to 15.5%, while the IZF issues an annualized interest rate that will be somewhere between 7% and 8% in the chart at the end of year 2.
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Mario Watanabe
Fubar: The IZF in Parqet always refers to the time period that you select and correlates with the performance chart 👍
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HardCorps667
Mario Watanabe, I would like to see the same chart as Fubar if I interpret this correctly. The point is mmN as follows: The performance of my portfolio was around 60% at the end of August 2023. At the beginning of September, I invested significant sums of money in relation to my existing portfolio, which dropped the “performance” from one day to the next to around 20%. So this value obviously doesn't express what I want to see. I'm interested in how well every euro invested has developed per day/week/month/year. And if possible, as a trend and “summed up”, not as a heat map per month, as z.B. shown in the “Return” tab in the portfolio analysis of the Pro version.
So suppose that I have invested 10k, invest another 10k in one second with the same distribution, and the value of all assets remains stable in that second: then the value that I would like to have displayed (I assume the IZF is the closest to that, but I am not sure) should change by 0% in this second. The calculated return, on the other hand, is halved in this second.
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HardCorps667
Fubar, do we mean the same thing?