XIRR stands for Extended Internal Rate of Return. It is an important metric that helps you estimate the actual rate of return from the multiple transactions of your market-linked investments occurring at different times. Read more to learn how to use the XIRR Return Calculator and how it works.
Returns | ||||
---|---|---|---|---|
Fund Name | 3 Years | 5 Years | 10 Years | |
Virtue II PNB Metlife | 18.68% | 25.83% |
16.48%
View Plan
|
|
Pure Equity Birla Sun Life | 17.56% | 21.84% |
15.07%
View Plan
|
|
Large Cap Equity Fund Tata AIA | 18.45% | 21.82% |
14.88%
View Plan
|
|
Grow Money Plus Fund Bharti AXA | 14.74% | 18.58% |
14.12%
View Plan
|
|
Pure Stock Fund Bajaj Allianz | 17.34% | 20.53% |
14.04%
View Plan
|
|
Diversified Equity Fund HDFC Standard | 14.77% | 17.79% |
13.96%
View Plan
|
|
Growth Super Fund Max Life | 15.5% | 17.5% |
12.83%
View Plan
|
|
Equity Fund SBI | 14.88% | 16.53% |
12.1%
View Plan
|
|
Bluechip Fund ICICI Prudential | 13.23% | 15.89% |
11.33%
View Plan
|
|
Equity Large Cap Fund Edelwiess Tokio | 12.3% | 15.39% |
11.21%
View Plan
|
Updated as of Nov 2024
Returns | ||||
---|---|---|---|---|
Fund Name | 3 Years | 5 Years | 10 Years | |
Active Fund QUANT | 24.92% | 31.48% |
21.87%
|
|
Flexi Cap Fund PARAG PARIKH | 20.69% | 26.41% |
19.28%
|
|
Large and Mid-Cap Fund EDELWEISS | 22.34% | 24.29% |
17.94%
|
|
Equity Opportunities Fund KOTAK | 24.64% | 25.01% |
19.45%
|
|
Large and Midcap Fund MIRAE ASSET | 19.74% | 24.32% |
22.50%
|
|
Flexi Cap Fund PGIM INDIA | 14.75% | 23.39% |
-
|
|
Flexi Cap Fund DSP | 18.41% | 22.33% |
16.91%
|
|
Emerging Equities Fund CANARA ROBECO | 20.05% | 21.80% |
15.92%
|
|
Focused fund SUNDARAM | 18.27% | 18.22% |
16.55%
|
Updated as of Oct 2024
The full form of XIRR is the Extended Internal Rate of Return. It is a way to calculate the annual return on an investment that has multiple cash flows occurring at different times.
The XIRR returns consider the specific timing of each transaction. This makes it a more accurate measure of investment performance in real-world scenarios.
This method is generally used to calculate the returns on Systematic Investment Plans (SIP), when you invest or redeem different amounts over different periods from your investment plans like mutual fund schemes and Unit Linked Insurance Plans (ULIP Plans).
NOTE: A higher XIRR shows a better investment performance. However, other factors, such as risk and volatility, should also be considered.
An XIRR calculator helps you to calculate the Extended Internal Rate of Return (XIRR) for a series of varying cash flows in a SIP investment plan. This calculator finds a single rate of return which can be applied to each of your investments or withdrawals to give the current value of your total investment.
You can calculate the XIRR for your SIP investments using the XIRR function available in Microsoft Excel.
The calculation formula for the XIRR Calculator online is as follows:
Extended Internal Rate of Return = XIRR (value, dates, guess)
Where,
values: A range of values representing the cash flows.
dates: A range of dates corresponding to the cash flows.
Guess*: An optional parameter that provides an initial guess for the XIRR.
*If omitted, Excel will use a default value of 0.1 (10%).
Step 1: Add the date entries for the following in the cells of the “Date” column-
Outflows (investments/ purchases) and
Inflows (redemption/ returns)
Step 2: In the next column, list all the transactions in front of the particular date entry. Mark entries as per the following-
Mark outflow entries as negative (-)
Mark inflow entries as positive (+)
Step 3: In the last row, enter the current value of your total holdings and the current date.
Step 4: Use the XIRR function in Excel: =XIRR(values, dates, [guess])
Let us take an example with investments in an SIP plan for 10 months as the following transactions:
Date | SIP Amount |
01/02/2023 | -20000 |
02/02/2023 | -500 |
03/10/2023 | -300 |
04/02/2023 | 10000 |
05/17/2023 | 27000 |
06/05/2023 | 105 |
07/08/2023 | -500 |
08/01/2023 | 10000 |
09/10/2023 | 4500 |
10/14/2023 | -1000 |
XIRR = | 8.826828074 |
For the above cash flows, the XIRR is 19.36% p.a. This annual rate of return is generated by considering the period of particular investments for different transactions.
XIRR is calculated by solving for the rate of return for all the cash flows. The in-built calculation formula used in Excel is mentioned below:
The following list mentions the key advantages of using an XIRR Calculator online:
The XIRR provides accurate performance of your SIP investments while considering the different transactions at different time intervals.
It is the most suitable annual return rate calculator for irregular cash flows.
Provides an annual rate of return to easily compare with other investment options.
Helps you to make an informed decision making for your future financial goals.
It is a fast and hassle-free way to automatically calculate your XIRR returns.
The XIRR calculator is a valuable financial tool that helps you to accurately assess the performance of your irregular investments in your SIP plan. This calculator simplifies complex calculations and contributes to more effective financial planning.
XIRR(values, dates, [guess])
values: A range of values representing the cash flows.
dates: A range of dates corresponding to the cash flows.
guess: An optional parameter that provides an initial guess for the XIRR.
Equity investments: a good XIRR ranges between 12 – 15% p.a.
Debt investments: a good XIRR ranges from 6 – 10% p.a.
†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
*All savings are provided by the insurer as per the IRDAI approved
insurance
plan.
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^Section 80C allows annual deductions of up to ₹1.5 lacs from the taxable income. Section 10(10D) provides tax-free maturity benefits for investments of up to ₹2.5 Lacs/ year, on policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.