The same balances, three different measures
This is the one-currency synthetic example used below. Keep the measure attached to the number.
| Measure | Included balances | Total |
|---|---|---|
| Investment portfolio | Investments only | 100,000 |
| Total assets | Investments 100,000 + bank savings 20,000 + property 300,000 | 420,000 |
| Net worth | Total assets 420,000 − mortgage 180,000 − other debt 10,000 | 230,000 |
Portfolio value, total assets, and net worth
Portfolio value usually means the current value of investments in a defined set of accounts. Depending on your chosen scope, that may include shares, funds, bonds, and investment-account cash. State which accounts it covers.
Total assets include those investments plus other property you own, such as bank savings, a home, and retirement accounts outside the selected portfolio. Net worth subtracts outstanding debts from total assets. None of these totals is the same as income or investment return.
A portfolio is not a complete balance sheet
Consider a synthetic example in one currency: investments of 100,000, bank savings of 20,000, and property of 300,000. Total assets are 420,000. A mortgage of 180,000 and other debt of 10,000 leave net worth of 230,000.
Reporting only the 100,000 portfolio would omit both the property and the debts. Reporting 420,000 as net worth would omit the liabilities. Keep the labels attached to the numbers.
Why portfolio growth is not wealth growth
If you move 10,000 from savings into investments, the portfolio rises by 10,000 but total assets do not change. Borrowing 10,000 to buy an investment increases both assets and liabilities; it does not create 10,000 of net worth at the moment of purchase.
Portfolio growth can contain deposits as well as price changes. Net worth growth can contain saving, debt reduction, gifts, estimate changes, and market movements. A difference between two totals is not enough to calculate an investment return.
Debt can change the wider picture
Your investment portfolio could fall by 5,000 while debt falls by 8,000, with all other included asset values unchanged. Net worth would rise by 3,000. Conversely, a rising portfolio can sit beside growing liabilities that offset the increase.
This comparison describes balances only. It does not show how repayments were funded or whether an investment choice was suitable. Use account statements and cash-flow records for those questions.
A principal repayment is not a separate gain
Using 5,000 of existing bank savings to repay principal leaves the investment portfolio unchanged. Savings and debt both fall by 5,000, so immediate net worth stays the same before interest, fees, and other costs. This example continues the balances above.
| Position | Portfolio | Savings | Property | Total debt | Net worth |
|---|---|---|---|---|---|
| Before payment | 100,000 | 20,000 | 300,000 | 190,000 | 230,000 |
| After 5,000 principal payment | 100,000 | 15,000 | 300,000 | 185,000 | 230,000 |
See retained income, market changes, and repayment reconciled →
Keep separate views with a consistent scope
Use a portfolio view for the investments it actually covers. Use a personal balance sheet for your overall assets and debt. Avoid counting both a retirement account total and its funds again when building the wider view.
A periodic net worth snapshot can sit beside an investment tool without replacing it. Exitmargin records asset and liability balances and dated checkpoints; it does not calculate a complete portfolio return or recommend trades.
Sources and scope
These are general explanations and product instructions, not personal investment, tax, or debt advice. The examples are synthetic. Product instructions describe the current app.
For product details, read How it works and Data & privacy. Report a correction through Help & contact.