XIRR In Mutual Funds: What Is It & How It Works
XIRR In Mutual Funds: What Is It & How It Works XIRR Meaning: What Is XIRR XIRR or extended internal rate of return is a single rate of return that provides the current value of the entire investment when applied to each systematic investment plan (SIP). It is used where many transactions happen during a period. At times, one can redeem a small amount from their investments. On the other hand, investors can pause several months of investments. In such instances calculating the returns becomes easier with XIRR. Investment cash flows are dynamic. In other words, they are never evenly spaced out. It is standard for an investment scheme to have early withdrawals or late deposits. Investors can skip a couple of months of installments. In these conditions, calculating the return from your investment scheme becomes difficult. However, with XIRR, you can easily calculate your returns. Fortunately, you can use the XIRR formula in Excel to calculate uneven cash flow intervals. How Does XI