The program is based on MSCI World Data collected. Users can update the data via the data input form by clicking on the View >> Index Data Input.
Setup
Inflation – estimated inflation rate. used to calculate any real values in the program.
Expense Ratio Mth – Expense ratio used for monthly contribution. this is used to calculate the total value for the selected period where the contribution is monthly.
Expense Ratio Yr – Expense ratio used for annual contribution. this is used to calculate the total value for the selected period where the contribution is annual.
Txn Expense Mth – Transaction ratio for monthly contribution. This will be used to calculate the total transaction cost for the selected period where the contribution is monthly.
Txn Expense Yr – Transaction ratio for annual contribution. This will be used to calculate the total transaction cost for the selected period where the contribution is annual.
Monthly Invested Amt – This monthly invested amount will be used to calculate the annual invested amount together with the cash account interest. This is taken with the assumption that the investor does a monthly contribution to his/her portfolio.
Accumulated Sht term interest – This is the cash account interest that the investor can earn for 11 months if he accumulates this in cash rather than invest monthly.
From and To Date – Used this to select the period to investigate. Once calculate is clicked, the values will be calculated and populated. Note that if you select a period that is way out of the data collected, it will only take to the point where there is data collected.
July 29, 2006 at 6:45 am
Hi drizzt,
Nice program but I am not able to run it because I am using .Net 2.0. Any chance of releasing it as standalone EXE file? Just asking…
Some questions:
1. Do you substract the expense ratio annually or monthly? If you substract ER monthly, then you can convert the annual rate to effective monthly rate using http://tinyurl.com/qt7sj
2. Do you substract the ER from the index data or the unit bought or the investment amount before buying?
May be we can use PV function (present value) to discount the index data by the amount of expense ratio… Is it appropriate ?
Thanks.
July 29, 2006 at 7:24 am
Hi choozm,
i thought its a standalone exe in an installation? i thought .net 2.0 is backward compatible meaning it can run .net 1.1 programs? i have data that is stored in xml file so i will release a zip with the exe see if you can run it.
regarding ur second question, i calculate the expense cost yearly. im still gathering input as to whether i should calculate it monthly. i just realise i should subtract the expense cost at the pt of the month. that will be more correct.
sighz, looks like we need version 1.1 soon.
July 30, 2006 at 9:54 pm
The program installed OK on my computer.
I understand the program is for evaluating whether it is OK to DCA yearly instead of monthly.
One feedback I had was that for the results to be realistic, we cannot assume that the DCA amount is fixed for 30++ years. Otherwise, the result is highly dependent on the early years, where much more units are bought.
A way around it might be to increase the DCA amount by say 10% every year.
July 31, 2006 at 3:39 pm
hi indexfundfan,
thanks for the feedback. i do understand that contribution do change due to the different stages one’s life progresses e.g. ur contibutions may decrease during early family building years. thats why it is important that whatever contribution that we declared here be for a purpose and that is for retirement.
10% seems abit high. this figure is hard to figure out. i could probably put this figure as a text input.
what is ur opinion on the issue of expense ratio when comparing between etfs and good quality unit trusts?
February 3, 2007 at 11:51 am
cheap phentermine
news