Comments on: Morningstar Adds Dollar-Weighted Returns Data http://genxfinance.com/morningstar-adds-dollar-weighted-returns-data/ Helping a unique generation achieve financial independence. Thu, 09 Feb 2012 03:12:52 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Jeremy http://genxfinance.com/morningstar-adds-dollar-weighted-returns-data/comment-page-1/#comment-21 Jeremy Sun, 05 Nov 2006 00:42:37 +0000 http://genxfinance.com/2006/11/04/morningstar-adds-dollar-weighted-returns-data/#comment-21 Good question, and I think I have the answer. I was able to find a factsheet PDF on exactly what the new Morningstar investor return is, how it works, and how it can help an investor. In summary though, it is a measure of how all of the investors in the fund did on average. This is different from a straight total return because investors typically make many transactions over the course of time, with systematic buys or sells, etc. <a href="http://corporate.morningstar.com/us/documents/PR/Investorreturnsfactsheet.pdf" title="Morningstar Investor Return Factsheet" rel="nofollow">Morningstar Investor Return factsheet</a> Good question, and I think I have the answer. I was able to find a factsheet PDF on exactly what the new Morningstar investor return is, how it works, and how it can help an investor.

In summary though, it is a measure of how all of the investors in the fund did on average. This is different from a straight total return because investors typically make many transactions over the course of time, with systematic buys or sells, etc.

Morningstar Investor Return factsheet

]]> By: Dogberry http://genxfinance.com/morningstar-adds-dollar-weighted-returns-data/comment-page-1/#comment-20 Dogberry Sat, 04 Nov 2006 23:39:44 +0000 http://genxfinance.com/2006/11/04/morningstar-adds-dollar-weighted-returns-data/#comment-20 So, what will this, dollar-weighted, number tell me? Tat most investors did not earn the 'average'? It sounds like an interesting concept. I just can't figure out how it can be useful. Dogberry <a href="http://money-and-investing.dogberrypatch.com/" rel="nofollow">Money & Investing Dogberry Patch</a> So, what will this, dollar-weighted, number tell me? Tat most investors did not earn the ‘average’?

It sounds like an interesting concept. I just can’t figure out how it can be useful.

Dogberry
Money & Investing Dogberry Patch

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