XIRR in mutual funds – A simple example The XIRR can then be computed by setting all individual CAGRs to be the same and by adjusting this value until the sum of the present value matches the actual present value. This can be accomplished by a function known as Goal Seek in Excel. Once you've entered the arguments, press Enter. Excel will calculate the XIRR and display the annualised rate of return for your investment. What is XIRR in mutual fund with example Let's say you invested Rs. 10,000 in a mutual fund on January 1, 2023, and then made additional investments of Rs. 5,000 each on July 1, 2023 and January 1, 2024. Learning What is XIRR in mutual funds? A beginner's guide XIRR or Extended Internal Rate of Return in mutual funds measures your actual annualised return by factoring in all investments and withdrawals made at different times. It helps track the real performance of your portfolio. XIRR is a metric used to estimate the return of mutual fund SIPs or SWPs, which consider the timing of multiple cash flows. Learn how to calculate XIRR in Excel with a step-by-step example and compare it with CAGR.
