Self Performance Evaluation Tool

I said I will share the tools which I have developed over the time here. On a previous post I shared [CSE Stock Screener]. This is another tool to track your investments and benchmark the performance against Fixed Incomes.

Background

First coded in late 2010. At the earlier stage of my investment carrier, I had some problems with tracking my investments and evaluating the performance. At the early stage of any investors life, There are couple of common questions. What are you really doing? Is it worth the risk? What is the actual gain? Can I beat FD rates? This program is my attempt to answer that question in a quantitatively manner.

Introduction

In this excel sheet you have to enter your monthly investment amount, Annual dividends received, Current PF Value, Account Balance(i.e Cash), Withdrawals as well as Fixed Income Rate which you expect to beat(Yellow Cells). Currently it support from 2005 onward (Let me know if you wish to extend the time frame). 

Once you click on "BenchmarkMe" button, it will calculate the fixed income gain as if you had banked the cash. It will treat your monthly investments as a renewing one month fixed deposits. Most importantly, this will calculate the annualized % gain of your portfolio.

Why Benchmark?

It is very important understand what you have been doing over the years. I found that most investors don't keep a track of their monthly investments, dividends and withdrawals. Eventually they end up on thinking that they have earned a lot of money, but in reality they may not have beaten even AAA rated bank FD's. Mainly this is because of the illusion of visible portfolio value increase over the time. The question we fail to ask is "At what rate?" Remember inflation is very high in Sri Lanka, portfolio value may be increasing while actual buying power is decreasing.

Year 2013 is a hell of a year for Debenture Issues and there are couple of more to come. Some of them went as high as 16.5% and we saw a lot of folks go after them. I think this insanely high rates are stressing our entire financial system. I could not count more than 6 financial institutions which have ROE over 20%. How do they planing to pay 16% if they can't make more than that? NDB have ROE of 42%, You may have a look at my dividend analysis on [NDB here]. This is a good area for further research, but for this post I'm going to stick with the topic. I bench mark myself with 20% rate. I have been able to maintain an annualized gain of 23% over the years. Therefor debentures are not that attractive for me.
So go ahead and give your self a try. Let me know if you have any problems.

Download

Download the tool [here].
Note :
1) You should enable Macros from Excel Trust Center for this to work.
2) Clicking on clear button will clear all data(obviously). If you want to Re-calculate after a small change, just click on "BenchmarkMe" button again.
3) Make sure your system date is correct. Macro reads current date from system date.
If it is incorrect, You may not get the correct results

Cheers...