5 Manadation behaviour. comentada em 05/03/2014 07:26 Assuntos Gerais Pioner em 04/03/14 21:57 comentada em 05/03/2014 07:26 Heres a simple illustration. Let us say an investor buys 100 shares of a fund that starts a year with a net asset value of 10 US dollars, representing an outlay of 1,000 US dollars. In the next year, the fund's net asset value rises to 20 US dollars, doubling the investor's money. Excited, the investor buys an additional 100 shares, spending another 2,000 US dollars. In the second year, the net asset value of the fund declines to 10 US dollars, back where it started. How did the fund and our investor fare over the two years? The time-weighted return for the fund is zero, of course, as the fund ended at the same price as it started. But the asset weighted return for the investor is –27 percent , calculated as the internal rate of return based on the timing and magnitude of the investor's cash flows. The return would have been zero had our investor used a simple buy-and-hold strategy, and there would have been no nominal gain or loss. But in the scenario we outlined, our investor lost 1,000 US dollars of the 3,000 US dollars total investment because of the purchase after the fund rose.Read more: Time-Weighted Less Asset-Weighted Return - Business Insider ver comentários do moderador@Bastter
