A bigger closing balance may mean the investment grew, or it may simply mean you paid more in. The statement separates those two things, and it is worth learning where.
Start with the basics the first page should answer: whose investment is this, which account or product is it, what period does the statement cover and what is it worth at the end date?
Then separate money movement from investment movement. Contributions and transfers add money; withdrawals and fees remove it. Market growth or loss changes the value without being a cash deposit or withdrawal.
Check the holdings and allocation, not only the total. Note cash balances, fund names and whether percentages add up sensibly. Look for beneficiary, debit-order or contact details that may need updating, while remembering that not every product uses beneficiaries in the same legal way.
Try this now
Mark six fields on one statement: opening value, contributions, withdrawals, fees, investment movement and closing value. Then write the exact start and end dates above them.
Ask your advisor
- Can you reconcile the change in value across money in, money out, costs and market movement?
- Which figure represents my actual return for this period?
- Is this statement sufficient to see all underlying holdings and costs?
If a number is unclear, keep the statement and ask for reconciliation rather than guessing from the closing balance.