XIRR
Extended Internal Rate of Return, the annualised return on an investment with irregular cash flows like a SIP.
When you put money in on different dates and amounts (a SIP, a top-up, a partial redemption), simple CAGR cannot describe your return. XIRR can. It is the single annualised rate that, when applied to each cash flow on its own date, equals the final value. Most broker dashboards and the Excel `XIRR()` function compute it for you. Use XIRR to compare your actual fund return to the fund's published 'CAGR', which assumes a single lump sum.
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