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Analyse Investment Returns vs Fixed Deposits Returns

It is understood that perhaps investment returns would yield higher return than bank rates like savings and fixed deposits. Some of the questions in my mind until now are:

  1. How much more money do I get in investment vs bank rates?
  2. What is my annualised returns?
  3. What is my time-weighted returns as my money into investment or bank are at different time periods of the year.

I’ve a plan and I’ve an action to it. My action is to save $xx amount at the end year xxxx. The amount was derived based on my forecasted salaried annual income. I did a great job when my investment portfolio reached my targeted amount at the end of year xxxx.

In this post, I want to calculate my investment portfolio returns based on additions/withdrawals from investment portfolio. A simplified version below:

 

An Investment Performance Calculator

This calculator shows you how your portfolio is doing. Just give it your investment’s beginning and ending balance for a given time period, and any additions and withdrawals (including dividends not kept in the account) along the way.

 

 

3 Things That I Wish to Know Earlier about Investment Returns and Fixed Deposits Returns

 

  1. Know How to Calculate Investment Portfolio Returns.

    I’m struggling until now. The good thing about me is that I am able to save the amount that I forecasted before the new calendar year. The bad thing about me is that I made many cash flow transactions within a year. This would affect my investment performance.

  2. Know that Cash Flow affects Investment Returns %.

    Every year, we’ve target goals for savings, investments and overall portfolio worth.  An example was that I created a mission to save $30,000 during my first working year.

  3. Know the consequences of not making this analysis earlier.

    I procastinated till now and I started investment 2 years ago. This sounds not so bad since I am still making money out of my money. This sounds very bad as I could not make a better (informed) decision without having a proper tracking template.