PROGRESS REVIEWS
Are you ahead of your plan, or have you simply added more money?
General education for India · Reviewed
A portfolio can increase because you contributed, because investments gained value, or both. Progress tracking should separate these explanations rather than calling every increase a return.
Keep a stable reference
Save the assumptions and balances that formed your original plan. That baseline answers “What did I expect then?” Your current observations answer “What has happened since?” If you overwrite the baseline every time reality changes, the comparison loses its meaning.
Use matching dates and scope. A month-end asset total cannot be fairly compared with an earlier mid-month balance without explaining the difference. A subset of accounts is not the whole portfolio.
An illustration
A fictional account starts at ₹10 lakh. During the period, ₹1 lakh is contributed and ₹20,000 withdrawn; the closing balance is ₹11.30 lakh. The residual is ₹50,000:
11.30 − 10.00 − 1.00 + 0.20 = 0.50 lakh
This residual is not an annualised investment return. It can include price movements, income, costs and any missing or misclassified transactions. Cash-flow dates matter for a properly defined performance calculation.
Treat missing evidence honestly
An absent statement is “not recorded”, not zero. A partial set of contributions is a subtotal, not proof that you fell behind your target. Before changing the plan, reconcile missing accounts and transactions.
Try in ArthaCanvas: save a baseline, add dated observations and record contribution coverage. Gross assets exclude the subtraction of liabilities; net worth does not. Neither a plan variance nor a gross-asset increase should be presented as investment performance.
Further reading: SEBI: reviewing investments and goals. The reconciliation example is fictional and independently calculated.
General education, not personal investment, insurance, tax or legal advice. Examples are not quotes or promises. Check current rules and seek qualified help where needed.