Monday, June 2, 2014

Do You Usually Factor In These 2 Elements In Calculating Your Rate of Returns?

investing thought
Ok, this might be a newbie question but since I am a newbie here, so please bear with me ;-) Also, I don't think there is a right or wrong answer, I just like to survey the norm.
My question is rather simple, do you usually factor in the following elements in calculating your rate of returns and why?
- The commission/fee for both purchase and sell transactions.
- The dividend(s) that you've received during the holding period.
Personally, I do take into consideration of the above mentioned elements since my invested capital is rather low and hence it does make a difference ;-)
What about you? Feel free to share your view in the comment below.
By the way, if you chanced upon this blog via The Finance (SG) [the local financial blogs aggregator], want to get to know the owner, Derek better? Check out my interview post with him here. Also, if YOU are keen to be featured in my interview series, feel free to send me an email at  


  1. Hi Richard,

    Yep. I take both into consideration when calculating XIRR. Bro8888 has written several articles on rate of returns.

    I'm a dividend investor. If I don't take into account dividends, I would probably be looking at 0% returns.


    1. Hi Derek,

      Thanks for the input. True, for the dividend investors like yourself, dividend is actually the real returns ;-)

      Errr... I am quite new to the community, who is this Bro8888 huh? Will like to check out his articles.


    2. Hi Richard,

      Here you go >

    3. Oic You are talking about him, I do check out his blog regularly and I am he is one of the sifu in this community


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