What is the return on the period of possession?

Payment to HPR (HPR) is the total return amount that is generated due to a particular asset or group of assets. This return is based on the amount of time when assets are owned by the investor. This approach is considered to be one of the simplest ways to assess the performance of investment, as it is easy to compare revenues from one asset or group of assets with revenues generated in previous periods of the same duration. As far as it is concerned, it is easier to determine whether these assets bring relatively consistent revenues or whether something has changed during the current period, which may require the sale of one or more of these shares.

The return on the period of possession usually includes the distribution of income and capital profits by the value identified by the initial period. This allows you to express growth or decline in terms of percentage. It is possible to use this calculation with almost any type of assets or groups of assets, including shares or bonds. Investors can even calculateLay the return of the period of possession of the entire portfolio, provided there was no real turnover in this portfolio. This allows you to use the portfolio value during the first period as the value of the initial period.

Determination of the proceeds of the possession is useful in terms of deciding whether to stick to the asset a little longer, or sell any asset that begins to show signs of decline. Since the HPR draws into sharp contrast, the difference in value from one period to the other is alerted to the possibility of problems that may be a sign of trend. This allows the investor to take a closer look at the reasons for the decline and see if they are likely to continue to reduce the value of Asset in the following periods. If so, the investor is likely to consider the sale of asset. If factors are considered short -term and there are indications that the asset in upcoming RectsObes will recover, the investor can decide a little longer to hold the asset.

Although it is useful, the return on holding is not the only strategy that the investor will use as part of the maintenance of the investment portfolio. The calculation provides traces of the performance of the assets held, either in terms of generating a constant increase in value, or has started to experience some kind of decline. Investors will still want to monitor market conditions, shifts in consumer requirements, and other factors that can affect market movements in the short and long -term horizon before they really decide to sell a specific asset.