https://v2.webnotes.in/tags/xirr/Recent content in XIRR on WebNotesHugoen-INTue, 19 May 2026 00:00:00 +0000https://v2.webnotes.in/how-to-compute-xirr-mf-portfolio/Tue, 19 May 2026 00:00:00 +0000https://v2.webnotes.in/how-to-compute-xirr-mf-portfolio/<p><strong>XIRR (Extended Internal Rate of Return)</strong> is the correct return measure for portfolios with irregular cash flows (SIPs, lump-sums, redemptions across different dates). Simple CAGR assumes a single investment; XIRR handles multi-cash-flow scenarios.</p> <p><strong>Conflict-of-interest disclosure.</strong> This guide is published by WebNotes Editorial Team for informational purposes. WebNotes has no commercial relationship with any AMC or platform. No affiliate commission is earned.</p> <aside class="callout callout--note" role="note"> <strong class="callout__label">Prerequisites</strong> <div class="callout__body"><ul> <li>Cash flow data (CAS, SoA, bank statement).</li> <li>Spreadsheet (Excel / Google Sheets).</li> <li>Current portfolio value (today&rsquo;s NAV × units).</li> </ul> </div> </aside> <h2 id="step-by-step-procedure">Step-by-step procedure</h2> <p>See the procedure infobox above.</p>https://v2.webnotes.in/xirr-for-sips/Tue, 19 May 2026 00:00:00 +0000https://v2.webnotes.in/xirr-for-sips/<p><strong>XIRR (Extended Internal Rate of Return)</strong> is the standard methodology for computing the annualised return on SIP-based mutual fund investments. Unlike CAGR (Compound Annual Growth Rate), which assumes a single initial cash outflow and a single terminal value, XIRR accounts for the irregular cash-flow pattern of monthly SIP subscriptions, occasional lump-sum top-ups, partial redemptions, and a terminal closing value.</p> <p>For Indian retail SIP investors who want to understand the true annualised return on their SIP, XIRR is the correct computation. Using simple averages or CAGR on SIP investments produces misleading results.</p>