Draft requirements for enhancements to the Investments functionality

[Nickallington]

As with others, I have found that the investment management functionality in MMEX is a bit limited, and sometimes counter-intuitive. After some discussions and suggestions, I used some free time to draw up a set of requirements and descriptions of how the functions ought to work. They have had some initial review and discussion, but not wide circulation.

The V2 development is now under review, and while I haven't been able to look at it yet, I understand that it addresses some or many of the proposals covered in the draft, which is a good first step. However it is worth getting a wider viewpoint on the overall requirements and process so that we can hopefully arrive at something that meets at least most people's needs.

Please feel free to comment or amend the draft.
Happy reading!

[Nickallington]

As this is a relatively large document, a bullet point summary courtesy of ChatGPT is now attached. It is not a substitute for reading the whole specification, but it gives an idea of what is covered.

[MlinMMEX]

Thank you... So... to understand de scope... Would it possible to compare the functional area of investments (all-features) w.r.t. other specific software, as for example the free https://www.portfolio-performance.info/en/download.html

See comparison of licensing in "compare and resume in a table these two licenses in url (a) https://moneymanagerex.org/docs/mmex/license/ and (b) https://www.eclipse.org/legal/epl/epl-v10.html"

[Nickallington]

I am not familiar with the Portfolio Perfomance (PP) application, but on looking superficially at the site it seems to be set up as a portfolio management and reporting tool, rather than as an accounting system. It therefore serves a different purpose to MMEX. However it does have performance data and reports that MMEX does not have, though the data available in MMEX would make similar reports and screens possible though maybe not to the extent available in PP. It does enable entry of shares by selecting the security from a list, but I do not know the source data for that list. The actual process of reporting a Buy or a Sell seems to be similar to MMEX. It seems to do some things that were deemed Out of Scope in the Enhancements doc, such as portfolio rebalancing. This seems to be done by generating a report showing which holdings are out of balance with your target allocation, so that the user can then make the appropriate Buys and Sells. It seems a bit complicated to use. Also, it apparently handles bullion and presumably commodities, likewise Out of Scope in the Enhancements doc, unless they are within ETFs, in which case they are in scope.

From the list of functions in their How-To guide:

Handling a choice dividend (that is, DRIP or Scrip, as per the Enhancements doc)
Recording a spin-off operation
Recording a stock split operation
Recording a merger
Recording insolvency
Booking of management fees

all are covered in the Enhancements doc, as is copying securities from one portfolio to another. On the other PP does not really support Bonds, except via workarounds, whereas the Enhancement doc covers these. Likewise Transfers In/Out doesn't seem to be covered by PP.

The Enhancement doc does not go into functions already provided by MMEX, such as imports, but I imagine those functions are comparable, assuming MMEX allows historical price import, but some of these functions in PP may require more specialised knowledge, such as JSON. One function not available in MMEX which could be useful is perfromance comparison against benchmark, such as against a specific index. That capability could usefully be added. But the bottom line, for me anyway, is that MMEX is an accounting tool, not a portfolio performance management tool, though I don't know whether an export function to allow input to PP for enhanced reporting and portfolio management capability would be feasible, but that was not part of the intention of the Enhancements doc, which focused on getting the MMEX app to better support the needs of its user base.

Anyone with a better knowledge of PP or other platforms most welcome to comment too.

[MlinMMEX]

<<though I don't know whether an export function to allow input to PP for enhanced reporting and portfolio management capability would be feasible, but that was not part of the intention of the Enhancements doc, which focused on getting the MMEX app to better support the needs of its user base.>>
Great analysis, @Nickallington I'm impressed Great thank youuuu

On my side, if I can contribute with fast thoughts, would be to have the features in MMEX for CDs "laddering", some funds management and specific reports that would help to get the deductible categories in investment operations.

Again, amazing job. Thank you very much! B.R. M.