This website is purely ACADEMIC in nature and NOT a stock market recommendation service or a tip provider. No live data or feeds are provided and all information is historic only. Information is provided for ease of understanding for the purpose of learning. Accuracy of definitions etc is not mantained. I am not a SEBI or IRDA registered.

Mutual Fund performance measurement with XIRR

Jump to:navigation, search
HomePersonal FinanceMutual FundsEquity

Why I raised this query is that some of my Mutual fund has been doubled in past few years. However, return rate is around 12% only, whereas some other funds gave 25 to 70% over the past 2 - 3 years.

XIRR is a better method of computing returns for ad-hoc investments. i.e when investments are made at different time periods.

It is often used to compute mutual fund returns for investments made in SIP mode.

A simple way of doing the XIRR calculation is by using Excel XIRR function.

XIRR(values, dates)

Example: XIRR(B1:B5,C1:C5) where

B1:B5 are the cells containg numerical values (such as SIP investment amount) and

C1:C5 are cells containing date data (such as SIP Dates)

For detailed example, refer:

Related Topics