How are my returns calculated?
StashAway uses the Modified Dietz Method to calculate total returns. The Modified Dietz Method evaluates a portfolio's return based on a weighted calculation of a portfolio's cash flows, it takes into account the timing of cash flows and assumes that there is a constant rate of return over a specified period of time.
The cash flows used in the formula are weighted based on the time they occurred in the period. For example, if they occurred in the beginning of the month they would have a higher weight than if they occurred at the end of the month.