To help you understand how your investments are performing on the Pakistan Stock Exchange (PSX), Stockintel.com calculates two key metrics: Net Deposits and Portfolio Value. These calculations provide a clear and detailed look at your portfolio's growth, factoring in all your transactions.
How are Net Deposits Calculated
Your Net Deposits represent the total cash you have put into your PSX portfolio, minus any cash you have taken out. This metric provides the true baseline for your personal investment, separate from market fluctuations.
Cash Deposits: This includes all funds you add to your portfolio to purchase stocks, whether through a bank transfer or a fresh deposit.
Withdrawals: This includes any cash you withdraw from your portfolio.
Charges and Taxes: To ensure accuracy, the platform also subtracts any cash outflows for brokerage commissions, CDC charges, taxes (like Capital Gains Tax), or other regulatory fees.
Your net deposits will not change based on the daily price movements of your stocks.
How is Portfolio Value Calculated
Your Portfolio Value is a snapshot of the total worth of your investments at a given moment. It represents the total amount you would have if you were to sell all your holdings and account for all the cash in your portfolio.
The calculation is straightforward:
Total Current Market Value of Holdings: This is the combined value of all the stocks you own. It's calculated by multiplying the number of shares of each stock by its current market price on the Pakistan Stock Exchange.
Plus Any Unused Cash: This includes any cash balance you have in your portfolio that is not currently invested in stocks. This cash is an important part of your total portfolio value as it's available to you for future trades or withdrawals.
By adding these two figures together, you get your total Portfolio Value. This is the number that reflects the overall health and size of your investments.
How are returns Calculated
Your Returns are the difference between your Portfolio Value and your Net Deposits. This calculation reveals the profit or loss your portfolio has generated from market movements and investment decisions.
The formula is:
Returns = Portfolio Value - Net Deposits