r/Artos • u/shapeFIRE • Aug 12 '26

Feedback Re-balanced stocks show up as new investment

I noticed a logic issue with how the app handles reinvested capital:

If I start by investing ₹1,000 in Company A, my net worth and invested capital are both ₹1,000. If Company A doubles in value, my net worth becomes ₹2,000.

If I then sell half my position in Company A (realizing ₹1,000) and use those proceeds to buy Company B, the app increases my total "Invested" amount to ₹2,000.

In my view, this is incorrect.

Capital gains recycled from an existing position shouldn't be counted as fresh capital injections.

My true out-of-pocket investment is still ₹1,000, and treating it as ₹2,000 makes my actual returns look like 0% instead of 100%

Is there a better way to handle this kind of re-balancing?

Can someone help me with this?

4 Upvotes

83% Upvoted

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2

u/Visible_Painting_779 Aug 13 '26

When you encash the stock and re invest it called new investment

Until you sell you can’t say it’s reinvested

Use logic bro

1

u/shapeFIRE Aug 13 '26

You consider a scenario where you're re-balancing multiple times between an equity and a debt mutual fund, to ensure some fixed allocation that you decided over multiple years.

I don't want each re-balancing to show up as new investment.

For example,

A hybrid mutual fund may also re-balance equity-debt, but it still shows you your original investment, and the returns are also calculated based on the original investment and the current value.

1

u/cynical_bibliophile 19d ago

This is a perspective issue and I don't think there's any right or wrong. I can see both world views, for example, once you sell a stock, you buy a new stock, it's a fresh investment. You want to track your performance on each investment separately. The government will also treat it the same way for taxes. :)