Ever wonder how your monthly mutual fund returns are truly calculated? You're not alone! Let's unravel the mystery behind your ₹10,000 SIP's performance.
Just subtracting total invested from current value gives an 'absolute return' – deeply misleading for SIPs. You didn't invest all money on Day 1, so simple math doesn't cut it!
Each ₹10,000 instalment has its own unique journey, buying units at different NAVs. Your first payment grows longer than your last. We need a method that considers timing!
The Extended Internal Rate of Return (XIRR) is the most accurate. It's your financial GPS, pinpointing the true annualised return for all your staggered ₹10K investments.
Market volatility, your investment horizon, fund category, expense ratio, and importantly, your disciplined behavior, all influence your SIP's final XIRR. Patience is key!
Don't confuse absolute vs. XIRR. Avoid obsessing over short-term dips (they're opportunities!). Never stop your SIP during market downturns – that's when rupee cost averaging shines!
Ready to visualize your ₹10,000 monthly SIP's potential? Use our reliable SIP calculators to plan your goals and see the power of compounding! Visit sipplancalculator.in now!