Zerodha New Performance Curve Tool: Zerodha, India’s leading homegrown brokerage firm, keeps bringing new facilities for its customers, under this on Friday, April 11, launched a brand new ferature called ‘Portfolio Performance Curve’ for traders to track their account performance through the company’s platform ‘Console’. Through Which traders will be able to use to track the performance of their account.
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Kamath On Zerodha New Performance Curve Launched
That Zerodha is ‘probably the only broker in India and possibly the world that offers this facility.’
Nithin Kamath wrote on X: “We at Zerodha have launched the portfolio performance curve on the console. This lets you see the performance of your account, and you can compare it with benchmarks like Nifty 50. “We are probably the only broker to offer this facility in India and possibly across the world. Nithin Kamath said on microblogging platform ‘X’
The performance curve is calculated similarly to the NAV of a mutual fund. The daily NAV is calculated using the P&L of all trades across equity intraday and delivery, F&O, commodities, MTFs and mutual funds based on the cash available in the account. The purpose of benchmarking is to show you that if your performs poorly, you would be better off investing in an index fund. This work has been on our list for a long time, but there was too much work left to be done, and it got delayed.”
Zerodha New Performance Curve Tool Features
The portfolio performance curve shows the actual performance of investments and trading (Equities, Mutual Funds (MFs), MTFs, F&O, Intraday and Commodities) after accounting for cash inflows and outflows. Looking at the full P&L of a portfolio does not tell us anything about performance as it is just a snapshot in time.
To properly assess the performance of a portfolio, you need to analyze returns over time, excluding cash inflows and outflows, then compare this performance to a proper benchmark. Hence, to help traders understand their investments and trading performance accurately, the brokerage is introducing portfolio performance curves on the console.
First time in India: Zerodha New Performance Curve Tool
This feature, now available to Indian investors for the first time, isolates actual investment and trading performance while adjusting for cash inflows and outflows, giving a more accurate picture of your trading account’s performance.
What is a Zerodha New Performance Curve Tool?
Just as mutual funds use the NAV curve to depict performance, the portfolio performance curve applies the same principles to the entire trading account.
Benefits of Zerodha New Performance Curve Tool –
Benchmarking: It shows how investments and trades (F&O and Intraday) are performing over different periods and lets traders compare their performance with the NIFTY 50 Index in a simple, visual way.
NAV-Based Calculation: The portfolio performance curve starts from a base Net Asset Value (NAV) of ₹1,000. It is set from the date your account first reaches ₹1,000. Then, when you add money to your account, new units are created based on the previous day’s NAV. Similarly, when you withdraw money, units are reduced by today’s NAV. This ensures that your performance curve includes only your actual investment and trading returns, not cash inflows or outflows.
What is NAV (Net Asset Value)? The price per unit of any fund or investment fund is stated. In simple terms, it is the price at which you can buy or sell units of the fund. It mentions how much you will pay for one unit or sale of that fund.
Zerodha launches new ‘Portfolio Performance Curve’ for traders: How to use on Console?
— Mint (@livemint) April 11, 2025
Here's a step-by-step guide 👇https://t.co/RFlJmdbDmK
Jay Chavda He is the Founder and Writer of businesspulsecare.com. He is an I.T Engineer, Freelancer, Businessman. He posts Business, Stock/Share Market, Finance Related News and updates on the website. 🔗