Many of the users have asked us how they can compare their own individual portfolios as well as family (group) portfolios for different periods.

One of the easiest way to do this is to save asset allocation reports for individual portfolios and group portfolios in pdf or excel format, say monthly or quarterly. You can then always compare your portfolio values of past and current date.

You need to go to Analytical Reports and select Asset Allocation Reports. In stead of printing this report, you need to click the ‘Save’ button on the top panel of your report window. Select the format in which you want to save your reports and save it with the appropriate name ending with date, for e.g. Name1-NetWorth-31-Mar-2009, Name2-NetWorth-30-Jun-2009. Once you do that, it would be extremely easy to compare your net worth reports for different dates. Please let me know if you have any suggestions or better ideas.

We have received many queries asking how various updates are provided in MProfit.

We provide end of the day closing prices of BSE stocks as well as Mutual Funds NAVs. The prices are updated automatically in MProfit when you start the application. Apart from price updates, we provide following automatic updates through internet.

1) Database Updates (which are addition of newly listed stocks, Mutual Funds and Company Name Change updates)
2) Software Updates (We keep improving the software functionality and keep adding new features & reports)

When new database updates are available, you will see the ‘ U ‘ symbol at the bottom of the summary screen. If you click on ‘ U ‘ and accept the updates, application will be restarted to update your database with these new updates. When new software update is available, you will receive the message about the new version availability.

Please keep accepting these new updates to enjoy the full benefits of MProfit application. You need internet connectivity to receive all the updates.

MProfit gives separate capital gain reports for Equity MF and Debt MF, because taxation is different for both the types. When you create MF scheme for the first time, you need to assign it as Equity MF or Debt MF. Exchange Traded Funds (ETFs) are also included in MF list and you need to assign ETF scheme as Debt MF as capital gain calculations for ETFs are same as Debt MF.

MProfit follows First in First Out (FIFO) method for capital gain calculations. MProfit also takes care of Dividend Reinvestment in calculating capital gains. Dividend Reinvestments are considered as new buy transactions for that particular scheme. When you sell (Redeem) units, all new subscriptions (buys) and dividend reinvestment transactions are taken into account and as per FIFO rule, short term and long term capital gains are calculated. I will explain the same with example below:

Here, the short term capital gain is calculated as Rs. 5200 on 15-Dec-08, because the cost of total 1050 units will be (10000 + 50*11) = 10550 and redemption (sale) value is 15750, and since this redemption has happened within 12 months of subscription (buy) of units, it will be a short term capital gain. Similarly, on 02-May-09, Rs. 450 is the long term capital gain as cost value is 50*11=550 (dividend reinvestment is considered as buy transaction) and redemption (sale) value is 1000, and redemption has happened after one year.

MProfit provides capital gain calculation reports after users add buy and sell transactions.

Below is the detailed explanation about how MProfit handles capital gain calculations.

MProfit follows First In First Out (FIFO) method while computing capital gain calculations. MProfit provides Intra-day Profit/Loss, Short Term Capital Gain and Long Term Capital Gain Reports. Buy and Sell transactions of same share in the same contract note are considered for Intra-day calculations. Short Term Capital Gain will be calculated if shares are sold within one year from the date of purchase and Long Term Capital Gain will be calculated if shares are sold after one year from the date of purchase.

One of the most important features of MProfit is to handle capital gain calculations after the corporate actions like Bonus, Split, Merger and De-merger. Capital gain calculations are adjusted automatically based on these actions as per the income tax rule, with effective from the date of this corporate action. MProfit handles multiple Bonus, split, Merger and De-merger action for any stock.

Long term and Short term capital gain calculations are calculated for different corporate actions as follows. Please note that this explanation is for those who need to know how capital gains are handled for various actions like Bonus, Split, Merger and De-merger. MProfit handles all of these automatically after the user adds the Bonus, Split, Merger and De-merger details.

Bonus:
The new bonus shares will be treated as purchased at zero value and the effective date of bonus will be treated as purchase date for capital gain calculations. The old shares will be treated same as before bonus, with no change in purchase price and date. So, when you sell the shares of this company, first the original shares will be sold as per FIFO method and then the bonus shares will be sold. If you sell Bonus shares within one year of receiving bonus, the gain/loss will be treated as short term capital gain and so on.

Split:
Only the purchase price will be automatically adjusted based on the split ratio. Date of purchase will remain the same. Capital Gain Calculations will be calculated based on this adjusted purchase price. The new adjusted price will be displayed in capital gain reports as well as in closing balance report.

Merger:
The new merged company will retain the original purchased date of the original company and the purchase price will be adjusted based on the merger ration. Recent example is Reliance Petro to Reliance (16:1), so for e.g. if 160 Rel Petro were purchased on 01-09-08 at Rs. 100, for the total amt of 16,000. The new 10 Reliance shares will have a purchase price of 1600 with the same purchase date as 01-09-08 and if you sell Reliance within one year from 01-09-08, the gain/loss will be short term in nature and if you sell them after one year, it will be long term in nature.

De-merger:
The new company will have the purchase date as effective date of de-merger. The parent company will retain the original date and purchase price for capital gain calculations. If you break down the purchase price between Parent company and new company, the purchase price will be automatically adjusted as per the allocated amount for each company.