Why is it important to update the buy average for transferred holdings?

Why is it important to update the buy average for transferred holdings?

When holdings are transferred from another broker to FYERS, the original purchase price may not always be updated accurately. Updating the correct buy average helps ensure that your transferred holdings are reflected accurately across your portfolio, profit and loss (P&L), and tax-related reports.

Accurate profit and loss calculations

Your buy average represents the actual acquisition cost of the holding.

If the correct buy price is not available, the profit or loss displayed for the transferred holding may not reflect your actual investment performance.

Updating the buy average allows to calculate P&L using the actual purchase cost.

Accurate capital gains and tax reports

The original purchase price and purchase date are important for calculating capital gains on transferred holdings.

Updating these details helps ensure that the following are calculated using the correct acquisition information:

  • Short-Term Capital Gains (STCG)
  • Long-Term Capital Gains (LTCG)

This also helps keep your tax reports aligned with the actual cost of your investments.

Correct portfolio performance

When the actual buy average is updated, your portfolio can reflect the correct acquisition cost and returns for holdings transferred from another broker.

Without the correct acquisition details, the performance shown for transferred holdings may be inaccurate.

What If...

ScenarioSolution
The original buy price is not available immediately.Refer to your previous broker's records or applicable statements before updating the value.
The buy average is not updated.P&L, portfolio returns, and capital-gains calculations for the transferred holding may not reflect the actual acquisition cost.
The displayed buy average is already correct.Select Accept to confirm the existing value instead of updating it.

Last updated: 07 Aug 2026