{"id":1215,"date":"2015-04-02T09:34:28","date_gmt":"2015-04-02T06:34:28","guid":{"rendered":"https:\/\/www.bondora.com\/blog\/?p=1215"},"modified":"2015-04-02T09:34:28","modified_gmt":"2015-04-02T06:34:28","slug":"how-do-we-calculate-annualized-net-return","status":"publish","type":"post","link":"https:\/\/goandgrow.eu\/en\/blog\/how-do-we-calculate-annualized-net-return\/","title":{"rendered":"How do we calculate annualized net return?"},"content":{"rendered":"<p>This is a question often asked from our support personnel. While it is also&nbsp;covered in our investment guide, let&#8217;s look into how the Secondary Market transactions can affect this number.<\/p>\n<p>If you have read the respective investment guide section, you&#8217;ll know that we only account for transactions that have happened or should have happened by the moment the return is calculated.<\/p>\n<p>Whenever a sale or purchase on the Secondary Market is completed, the resulting change in your portfolio will also be accounted for the next time return is calculated.<\/p>\n<p><!--more--><\/p>\n<p>For example:<\/p>\n<ul>\n<li>If you make a purchase, then buying at a discount will increase your return since you received a capital gain. Buying at a mark-up and paying the commission on purchases however, will decrease your return initially until you start receiving payments from the purchased loans.<\/li>\n<li>If you sell a loan at mark-up, then your return will increase, but when selling at discount or paying the commission, it will decrease accordingly.<\/li>\n<\/ul>\n<p>If you have very few other transactions, then your annualized return will be mostly determined by whether you purchased your investments at a discount or mark-up or in other words, if those transactions initially resulted in capital gain or loss.<\/p>\n<p>The more transactions you have made however, the less each new transaction will affect the return figure.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This is a question often asked from our support personnel. While it is also&nbsp;covered in our investment guide, let&#8217;s look into how the Secondary Market transactions can affect this number. If you have read the respective investment guide section, you&#8217;ll know that we only account for transactions that have happened or should have happened by [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[117],"tags":[],"class_list":["post-1215","post","type-post","status-publish","format-standard","hentry","category-bondora-news"],"acf":[],"featured_image":null,"categories_names":["News"],"category_name":"News","_links":{"self":[{"href":"https:\/\/goandgrow.eu\/en\/wp-json\/wp\/v2\/posts\/1215","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goandgrow.eu\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goandgrow.eu\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goandgrow.eu\/en\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/goandgrow.eu\/en\/wp-json\/wp\/v2\/comments?post=1215"}],"version-history":[{"count":0,"href":"https:\/\/goandgrow.eu\/en\/wp-json\/wp\/v2\/posts\/1215\/revisions"}],"wp:attachment":[{"href":"https:\/\/goandgrow.eu\/en\/wp-json\/wp\/v2\/media?parent=1215"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goandgrow.eu\/en\/wp-json\/wp\/v2\/categories?post=1215"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goandgrow.eu\/en\/wp-json\/wp\/v2\/tags?post=1215"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}