How can I calculate the average purchase price in MProfit?

In this tutorial, we will explain how to calculate the average purchase price in MProfit.

Here, we will use Reliance Industries' example to demonstrate the calculation.

This calculation is based on the formula amount invested divided by quantity.

If we purchased one hundred shares at five hundred rupees each, our total investment would be fifty thousand rupees.

Applying a Bonus

Step 1: Login to your MProfit account and right-click on Reliance Industries.

Step 2: Then select Corporate Actions from the drop-down list.

Step 3: Apply the Bonus by clicking Approve.

Step 4: Then click Confirm.

Step 5: Click on Add Selected Records.

Step 6: Return to the portfolio by clicking Go Back to Portfolio.

After applying the bonus, the number of shares doubles while the total investment remains the same, resulting in a change in the average purchase price.

Applying a Demerger

Step 1: Right-click on Reliance Industries again.

Step 2: Then select Corporate Actions from the drop-down list.

Step 3: Apply the Demerger by clicking on Approve.

Step 4: In the demerger window, you will notice that the quantity ratio is one-to-one, and there is a variance in the cost of acquisition.

Then click Confirm.

Step 5: Next, click on Add Selected Records.

Step 6: Return to the portfolio by clicking Go Back to Portfolio.

After applying the demerger, the average purchase price changes again due to the adjustment in the total investment.

The average purchase price in MProfit is always calculated using the formula: amount invested divided by quantity.

This is how you can calculate the average purchase price in MProfit!