If you own mutual funds why do you need a portfolio manager?\u00a0 Why can’t you just use the tools your mutual fund provides?<\/p>\n
Many mutual funds do not provide all of your transaction history.\u00a0 They may provide up to 3 years of history but if you have owned your mutual fund longer than this, you do not have access to every transaction you have made.<\/p>\n
Why is transaction history important?\u00a0 One, you need a complete transaction history for tax purposes if you sell shares in your mutual fund.\u00a0 Whenever you sell shares in a mutual fund you need to report to the IRS you gain or loss from to the sale.\u00a0 Without a complete transaction history you cannot accurately report the gain or loss, which may effect your taxes.<\/p>\n
You also want a complete transaction history so that you can track your mutual fund’s performance over the history of the investment, not just over a limited time.<\/p>\n
Many mutual funds will provide you the yearly return\u00a0of the mutual fund\u00a0but this may not be the return your investment has made.\u00a0 For example, say you own the hypothetical mutual fund XRXRXR.\u00a0 Let’s say XRXRXR price on January 1 is $100 a share and on December 31 it is $110 a share.\u00a0 The mutual fund will report their yearly gain as 10%.\u00a0 However, this does not take into account when you bought your shares.\u00a0 Let’s say that on July 1 you buy shares at $90 a share.\u00a0 Based on a closing price of $110\/share, your gain is 22% and not 10%.\u00a0 Or, let’s say you bought your shares at $120 a share.\u00a0 Based on a closing price of $110\/share, your loss is 8% and not a 10% gain.\u00a0 If you rely on your mutual fund’s performance return it could be less or more than what you are actually earning.<\/p>\n
With EquityStat you can view the complete history of your transactions.\u00a0 In addition EquityStat gives you the ability to generate IRS form 8949 which will calculate any gains or losses on the sale of your mutual fund shares.<\/p>\n
EquityStat will also calculate\u00a0the annualized return\u00a0on all of your investments.\u00a0 This calculation is based on when you purchased and sold your shares, not what the mutual fund reports their return is.<\/p>\n
If you own mutual funds why do you need a portfolio manager?\u00a0 Why can’t you just use the tools your mutual fund provides? Transaction History Many mutual funds do not provide all of your transaction history.\u00a0 They may provide up to 3 years of history but if you have owned your mutual fund longer than […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[4,17,19,18,7],"class_list":["post-41","post","type-post","status-publish","format-standard","hentry","category-equitystat-tips","tag-equitystat","tag-irs","tag-mutual-fund","tag-taxes","tag-tips"],"yoast_head":"\r\n