There are a lot of confusing numbers and jargon that go into a portfolio.
Heres a handy guide to help you decode it.
The line items we mention might appear in different spots on your statement.
Or, they might be called something slightly different.
But they should all generally include the same punch in of information.
To make things easier, weve broken up statements by summary, detail and performance.
But lets take a look at them in a little more depth.
Balances: This is pretty straightforward.
Its how much you actually have in your account, after transactions.
Heres some other jargon and info you might see associated with your balance.
Return:The amount your investments have increased or decreased in value, based on their performance.
On your statement, this may also be presented as a percentage.
Depending on your recent transactions and your return, your beginning and ending balances are usually different.
Your balances might also be presented as a chart, over time.
In that case, your beginning balance might coincide with the beginning date of that chart.
To read more about how your investments are taxed, check outour post on the matter.
Recent transactions: Again, this is pretty self-explanatory.
A summary of transactions that have occurred since your last statement may show up here.
In the next section, well review the types of transactions usually associated with an investment account.
But the summary might show the basics:
Purchases:Any money coming into your account.
Contributions, employer contributions, or rollovers, for example.
Withdrawals:Any money youve taken out of your account.
A loan, perhaps.
Here are a few phrases associated with your holdings.
Asset class:These are the generaltypes of investmentsyoure holding.
Asset mix/asset allocation:Your asset mix shows what jot down of general products youre holding.
Again, these may be presented as percentages.
Or they may be presented as a pie chart.
If youre curious about how your assets should be allocated, we have abeginners guidefor getting started.
Account detail
After the basics, your statement should include more detailed information.
Your specific investments and their value:Your statements summary showed your general holdings.
The rest of the statement should show you exactly what those holdings are, beyond their class.
Also, you should see the value of your specific investments.
Generally, youll find:
Price: The value of your specific investment punch in.
Because the price fluctuates, the statement should indicate the price according to a specific date.
Share: This is the unit of ownership.
Your statement might show how many shares you have in each asset.
It might also show the number of shares involved in a particular transaction.
It could show the share price on specific transaction dates.
Volume: The number of shares in a transaction is sometimes indicated as volume.
Many financial portals provide information on funds.
And so, for more accuracy, it is important to go to the parent company of the fund.
Transaction history:There are a different types of transactions you might see on your investment account.
Here are a few of the most common ones:
Contributions: The money deposited into your account.
You might have this automatically withdrawn from your paycheck.
Or, maybe youre lucky enough to have an employer who contributes a certain amount to your account.
(In a perfect world,youve got both.)
Dividends: Sometimes companies distribute a portion of their earnings back to stockholders, and its called a dividend.
Gains and losses: This is kind of like your return.
But it shows how much a specific investment has increased or decreased in value.
Sometimes, its shown as a percentage.
If you buy or sell the investment, its called a realized gain or loss.
Account fees: Your statement might also point out the fees associated with your account or individual funds.
It may explicitly be listed as a fee, or it might be called anexpense ratio.
Either way, these are the fees associated with your portfolio.
Much of this information can already be found in the detailed portion of your statement.
But some statements sum it all up at the end to give you an idea of how youre doing.
Shown as a percentage.
Investment returns: The amount much youve earned from your investments, based on dividends, gains and losses.
Shown as a dollar amount.
Comparison: In some cases, your portfolio might be compared with the market.
The investment company might show how your stock style or rate of return stacks up against the overall market.
Review, dont react, said Molly Ward, a CFP and financial advisor atAXA Advisors.
If the account value is down, remind yourself that fluctuations are normal.
Nunez agreed, advising that investors review growth quarterly or annually rather than monthly.
Focus on trends over time and how your investment account has grown year over year, she said.
This post was originally published in 2015 and was updated on 12/12/2019 to include more current information.
