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
|Home||Personal Finance||Mutual Funds||Equity|
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.
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: http://www.excelfunctions.net/Excel-Xirr-Function.html
- Understanding Mutual Fund Factsheet
- Evaluating of Mutual Fund Schemes
- Comparing Mutual Fund Schemes
- Mutual Fund performance measurement with CAGR
- Mutual Fund performance measurement with Standard Deviation
- Mutual Fund performance measurement with Sharpe Ratio
- Mutual Fund performance measurement with Beta
- Mutual Fund performance measurement with XIRR