How is Return on Investment (ROI) calculated?
ROI, or Return on Investment, is a critical metric that measures the percentage return on your investment as a percentage figure.
ROI encompasses both realised and unrealised gains, providing a comprehensive view of your investment performance.
Calculating ROI is straightforward. You can use the following formula:
ROI = P&L / Value of Deposits
P&L represents the monetary gain (£) on your deposited funds. For more detailed information, please refer to [here].
Value of Deposits corresponds to the cash value of deposits made into your investment account.
If you hold an LP (Limited Partner) account, your ROI takes into account your ownership in the GP-LP fund:
- P&L: This includes the gain on your involvement in the GP-LP fund.
- Value of Deposits: Encompasses all capital drawdowns against your LP account.
For investors with Managed Accounts, the complete value of both P&L and deposits is included in your ROI calculation. Every financial transaction related to your Managed Account contributes to your ROI.
Does foreign exchange impact my ROI on Floww?
Concerned about the impact of foreign exchange rates? Don't be. Our platform maintains up-to-date spot exchange rates for over [x] currencies. This allows us to seamlessly convert investments made in foreign currencies into your reporting currency using the current spot rate.