Re: Unitising portfolio impossible due to timing of information?
Posted: October 29th, 2021, 11:53 am
Funduffer:
Daveh is correct, and I find the "black box" analogy makes it easy to see what's happening for accumulation units.
Inside the black box you have a value (number of units x unit price) some of which is cash. Presuming that cash is enough to pay for the transaction costs there is no need to put more cash into the black box, and the number of units will remain the same.
Only if you need to put more cash in (or want to take some cash out) will the number of units alter. That makes the accumulation unit easier to operate since you may not need to recalculate the number of units for long stretches.
Going back to the HYPTUSS description and re-reading it might help:
http://lemonfoolfinancialsoftware.weebl ... folio.html
Daveh is correct, and I find the "black box" analogy makes it easy to see what's happening for accumulation units.
Inside the black box you have a value (number of units x unit price) some of which is cash. Presuming that cash is enough to pay for the transaction costs there is no need to put more cash into the black box, and the number of units will remain the same.
Only if you need to put more cash in (or want to take some cash out) will the number of units alter. That makes the accumulation unit easier to operate since you may not need to recalculate the number of units for long stretches.
Going back to the HYPTUSS description and re-reading it might help:
http://lemonfoolfinancialsoftware.weebl ... folio.html