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Why is the Buy Average Price Incorrect in Your RMoney Portfolio?

Post Date : November 15, 2025

You may sometimes notice that the Buy Average displayed for a stock in your portfolio appears different from what you expected.
This usually relates to how the cost of the stock changes after corporate actions or multiple purchases over time.

FIFO Method Used for Average Price

RMoney calculates the Buy Average using the FIFO (First-In, First-Out) method.
This means the shares you purchased earliest are considered sold first when calculating your cost.

If you bought the same stock at different prices and sold some quantity, the Buy Average will adjust accordingly.

Corporate Actions Can Change Your Buy Average

Corporate events like: Bonus Issue, Stock Split, Rights Issue, Demerger and merger Modify the effective cost of your holdings.

Example: 

If a stock you purchased at ₹100 undergoes a 1:1 bonus, your new adjusted buy average will become ₹50 (because your quantity doubles).

Why the Average Appears Incorrect Temporarily

Corporate action adjustments require:

• Official confirmation from the company
• Updates passed by the exchange
• System recalculation

This may take a few days to two weeks after the record date.

During this time, the Buy Average may look incorrect, but it will be corrected automatically once the adjustment data is processed.

Summary

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RMoney Support: 0562-4266600 / 0562-7188900, Email: askus@rmoneyindia.com