Mutual fund XIRR: the yearly return of your SIPs, worked out for you
A SIP puts money in on many dates, so a simple percentage gain can't tell you how fast that money grew. XIRR can. The Mutual Fund Journal works it out for every fund and for your whole portfolio from your CAS.
What XIRR measures
XIRR (extended internal rate of return) is the single yearly rate that would turn every amount you put in, on the date you put it in, into what you have today plus anything you took out. Because it respects dates, it can be read on the same yearly basis as an FD rate.
XIRR vs total (absolute) return
Total return is profit divided by amount invested. It ignores time: 20% over one year and 20% over five years look the same. For a SIP it also treats last month's instalment as if it had been invested from day one.
The journal shows both, side by side. Total return answers "how much have I made?"; XIRR answers "how fast has it grown per year?".
How the journal calculates it
The calculation uses the cashflows straight from your CAS.
- Every purchase and SIP instalment is money out, on its date.
- Every redemption is money back, on its date.
- Today's value is counted as if the units were redeemed today.
- The portfolio XIRR puts every fund's cashflows into one calculation.
- For the first 30 days it shows "—": a few days' move would annualise into a misleading number.
See your XIRR
- 01Get your CASA detailed CAS from CAMS or KFintech, since inception, has every dated cashflow.
- 02Upload itUpload the PDF to the Mutual Fund Journal. It's read in your browser.
- 03Read the XIRR columnEach fund's XIRR is in the table; the portfolio's is in the summary, next to total return.
Common questions
What is a good XIRR for a mutual fund?
There's no single number: XIRR depends on the fund's category, the period and when your SIPs went in. Arthtome shows your own XIRR as a fact and doesn't rate it.
Why is my XIRR different from the fund's CAGR?
A fund's CAGR is for one lump sum over a fixed period. Your XIRR uses your own dates and amounts, so two investors in the same fund can have different XIRRs.
Why does a new fund show "—" for XIRR?
Until your first investment is 30 days old, annualising a few days' movement would give a misleading number, so it isn't shown.
Ready when you are. It takes about two minutes.
See my XIRRArthtome is not a SEBI-registered Investment Adviser or Research Analyst. Data shown is based on the user's CAS and entries, AMFI's public NAV data and NSE's end-of-day prices. For informational and educational purposes only. No buy/sell recommendation. Past performance is not indicative of future returns.