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Key Concepts: Portfolio, Holding and Trade

Understand how portfolios, holdings, and trades fit together so you can set up Navexa in line with your tax entities.

Updated this week

When you use Navexa, three terms come up again and again: portfolio, holding, and trade. Here’s what each means and how they work together.


Quick definitions

  • Portfolio = a tax entity’s overall investment account

  • Holding = each individual asset

  • Trade = every transaction that changes a holding


Portfolio = Tax Entity and Container

A portfolio in Navexa represents all investments for a single tax entity.

  • Create one portfolio for each entity. For example: Individual, SMSF, trust or company.

  • A portfolio can include many broker accounts, cash accounts and custom investments.

  • Each portfolio has its own performance, tax and reporting settings.

Think of a portfolio as the container that groups everything together for that tax entity, not as a single broker account.

Common examples

  • Personal Portfolio

    • Brokers: CommSec, Pearler

    • Assets: ASX shares, ETFs, cash account

  • SMSF Portfolio

    • Brokers: Selfwealth

    • Assets: ASX shares, managed funds, term deposits

Think of a portfolio as the “container” that groups everything together for that entity.


Holding = Asset

A holding is one asset inside a portfolio.

  • Shares and ETFs

  • Managed funds

  • Crypto

  • Property

  • Custom investments

Each holding is tracked separately for performance, income and tax.

A portfolio can contain many holdings, but each holding belongs to only one portfolio.


Trade = Transaction

Trades are the individual transactions that affect a holding.

  • Buys and sells

  • Dividends and distributions

  • Interest, deposits and withdrawals

  • Corporate actions such as splits or consolidations

Multiple trades make up the history of a holding, and all the holdings together make up the portfolio.


How they fit together (examples)

Example 1: Portfolio 1 – Personal (individual)

Tax entity: One individual.
Portfolio: “Portfolio 1 – Personal”

Inside this one portfolio:

  • Brokers and accounts

    • CommSec

    • Pearler

    • Superhero

    • Macquarie Cash Management Account

  • Example holdings and transactions

    • CBA on ASX via CommSec – Buy, Dividend, DRP, Sell

    • VAS on ASX via Pearler – Buy, Buy

    • TSLA on NASDAQ via Superhero – Buy, Sell

    • Macquarie Cash Management Account – Deposit, Interest, Withdrawal

All of these sit inside the same Personal portfolio because they belong to the same tax entity.


Example 2: Portfolio 2 – Joint

Tax entity: Joint account for two people.
Portfolio: “Portfolio 2 – Joint”

Inside this portfolio:

  • Brokers and accounts

    • CommSec

    • Joint Bank Cash Management Account

  • Example holdings and transactions

    • BHP on ASX via CommSec – Buy, Dividend

    • IVV (S&P 500 ETF) on ASX via CommSec – Buy, Buy

    • Joint cash account – Deposit, Interest, Withdrawal

These investments are kept separate from each person’s individual portfolio.


Example 3: Portfolio 3 – Family Trust

Tax entity: Green Family Trust.
Portfolio: “Portfolio 3 – Green Family Trust”

Inside this portfolio:

  • Brokers and accounts

    • Selfwealth

    • Bank Term Deposit Account

  • Example holdings and transactions

    • WOW on ASX via Selfwealth – Buy, Dividend

    • VGS on ASX via Selfwealth – Buy, Buy

    • 12 month term deposit (custom holding) – Deposit, Interest

All investments owned by the family trust live in this one portfolio.


Example 4: Portfolio 4 – Company

Tax entity: Blue Pty Ltd.
Portfolio: “Portfolio 4 – Blue Pty Ltd”

Inside this portfolio:

  • Brokers and accounts

    • Interactive Brokers

    • Company operating bank account

  • Example holdings and transactions

    • AAPL on NASDAQ via Interactive Brokers – Buy, Dividend

    • QQQ on NASDAQ via Interactive Brokers – Buy

    • Company cash account – Deposit, Withdrawal, Fees

Company investments are not mixed with the directors’ personal portfolios.


Example 5: Portfolio 5 – SMSF

Tax entity: Green SMSF.
Portfolio: “Portfolio 5 – Green SMSF”

Inside this portfolio:

  • Brokers and accounts

    • SMSF share broker

    • SMSF bank account

  • Example holdings and transactions

    • VAS on ASX via SMSF broker – Buy, Dividend, DRP

    • IVV on ASX via SMSF broker – Buy, Buy

    • SMSF cash account – Contributions, Deposit, Interest


In every example, one portfolio represents one tax entity. Inside that portfolio you can have multiple brokers, holdings and cash or custom accounts.


In short:

  • Portfolio = the tax entity’s overall investment account.

  • Holding = each individual asset tracked.

  • Trade = every transaction that changes a holding.

This structure enables Navexa to crunch the numbers for performance and tax reporting accurately.


FAQs

How many portfolios should I create?
Create one portfolio for each tax entity. For example: one for your personal investing, one for your SMSF, one for a trust or company.

Should I create a portfolio for each broker?
Usually no. A portfolio can contain multiple broker accounts. Group all brokers belonging to the same tax entity into a single portfolio.

Can I have more than one broker in a portfolio?
Yes. For example, your Personal portfolio might include trades from CommSec, Pearler and Superhero, plus a cash account.

Can a holding appear in more than one portfolio?
No. Each holding belongs to a single portfolio. If you hold the same asset in two tax entities, create one holding in each relevant portfolio.

Can I move a holding to another portfolio later?
Yes. You can move a holding between portfolios if you set something up incorrectly. Moving a holding does not create or delete trades. It simply shifts the full trade history to the other portfolio. If that holding already exists in the receiving portfolio, the move will not go through.

Can I track cash, term deposits or other assets that are not shares?
Yes. You can add cash accounts and custom investments (for example term deposits or property) as holdings inside a portfolio.

Do portfolios affect tax reporting?
Yes. Tax reports are run per portfolio. This is why we recommend one portfolio per tax entity.

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