Ever wondered if your mutual fund returns are 'good'? Let's break down how to truly calculate them, beyond just a simple percentage.
Your app shows a % return, but is it the whole story? Priya from Bengaluru thought her 14% felt 'off.' Learn why and discover methods like Absolute, CAGR, & XIRR.
Absolute Return is total gain for <1 year. CAGR is annualised growth for lump sums >1 year. If ₹1L became ₹1.5L in 3 years, CAGR is 14.47%.
For monthly investments (SIPs), XIRR (Extended Internal Rate of Return) is key. It accounts for varying investment dates & amounts, giving a true annualised return.
Don't panic! Use Excel/Google Sheets `XIRR` function. Just input dates (SIPs as negative, current value as positive). It's the gold standard for SIP performance.
Gross returns aren't what you get. Expense Ratios (fund fees) are deducted. Taxes (STCG/LTCG) depend on fund type & holding period. Always factor them in!
Ready to truly understand your money's growth? Head to sipplancalculator.in for tools or grab an Excel sheet to calculate your XIRR today! Your financial future awaits.