What is the performance curve on Console?

The performance curve on Console represents how a portfolio or trading account performs over time. Unlike the existing account value curve, which shows changes in value based on deposits or withdrawals, the performance curve reflects actual portfolio performance, including both realised and unrealised profits and losses.

The performance curve starts with a base Net Asset Value (NAV) of ₹1,000 from January 2020 or from the date the account value crosses ₹1,000, whichever comes first. New units are added based on the previous day’s NAV when funds are added. Units are subtracted when funds are withdrawn.

Example scenario

• Account value curve

1. 1. 1. Initial account value: ₹10,000.
      2. Added funds: ₹5,000.
      3. New account value: ₹15,000.
      4. The chart reflects a 50% increase (from ₹10,000 to ₹15,000), misleadingly implying a profit, even though this change is due to added funds, not actual performance.
         

• Performance curve

1. 1. 1. Initial account value: ₹10,000.
      2. NAV is ₹1,000.
      3. Total units: 10 (₹10,000 ÷ ₹1,000).
      4. Added funds: ₹5,000.
      5. New units created: 5 (₹5,000 ÷ ₹1,000).
      6. Total units after addition: 15 (10 original units + 5 new units).
      7. NAV calculation: NAV remains unchanged at ₹1,000.
      8. Total account value: ₹15,000 (15 units × ₹1,000 NAV).
      9. The performance curve accurately shows no profit or loss since the NAV stays constant at ₹1,000.

The table below represents the performance curve if there is a profit or loss:

Did you know? Adjustments in the value and units are made to account for IPOs and corporate actions like bonuses, splits, etc., to ensure only realised and unrealised profit and loss are reflected in the performance curve.