Quote Originally Posted by Cool Bear View Post
Yes, all our RARs are affected by new loans and investments. So, someone who had put in all their money at one go at the very beginning and had been taking out all cash as it comes available will probably have a lower RAR. Besides selection of loans and grades, it is very much affected by the timing of our investments - whether we drip feed, ramp up or down or all in one go.

Putting in new money will on one hand raise the RAR as the new loans did not have enough time to go into defaults. On the other hand, it will lower the RAR in the first month of those loans as the interest for those loans have not kick in.

I suppose the real RAR is when we see through all the investments and have zero balance in outstanding loans at the end of 5 or more years having taken out all our cash by then.
The RAR calculation is based on outstanding principle so if someone was withdrawing regularly from their account, it would not directly effect their RAR.

"RAR shows returns on money invested, not all funds in your Harmoney account."