The Smart Investor's Tool: Mastering Zerodha's Portfolio Performance Curve

Zerodha has introduced the Portfolio Performance Curve, a powerful tool designed to help traders and investors accurately assess their portfolio's performance over time. This feature adjusts for cash inflows and outflows, providing a clearer picture of investment returns compared to traditional account value curves. Here's how to use it on Console:

 

Step-by-Step Guide to Using the Portfolio Performance Curve:

Access Console:

Understand the Curve:

The curve starts with a base NAV of ₹1,000. New units are created when you add funds, and units are reduced when you withdraw, ensuring that only actual investment returns are reflected.

 

Compare with Benchmarks:

Click on "Compare" and select "NIFTY 50" to benchmark your portfolio's performance against the index. This allows you to see how your investments are performing relative to the broader market.

 

Customize Views:

You can view separate performance curves for equity, mutual funds, or a combined portfolio view.

Interpretation: Use the curve to identify periods of profit or loss, and adjust your investment strategy accordingly.

Future Enhancements: Zerodha plans to add more analytics and benchmark options in the future.

 

Sources: Zerodha, YouTube, Zerodha Support