As an investor aiming to manage your portfolio effectively, one of the most important tasks is tracking and calculating your investment returns. Understanding your returns allows you to evaluate how your investments are performing over time and whether your strategy is on the right track.

However, not all return calculation methods are created equal, and using the wrong approach can lead to misleading outcomes. In this blog post, we’ll explore different methods for calculating returns, highlight their advantages and disadvantages, and explain the methods used by Portfellow.