If you also invest in Mutual Fund through SIP then you should also know a lot about XIRR, all the information about XIRR in Mutual Fund is given here.
What is XIRR in Mutual Fund
XIRR (Extended Internal Rate of Return) is a method of assessing the annualized compound return on your total investment in any mutual fund scheme. Yes, that’s correct. An individual who invests in any mutual fund through SIP can assess the annualized compound return on their SIP investments using the XIRR formula.
XIRR Full Form in Mutual Funds
XIRR full form is – ‘Extended Internal Rate of Return’
What is the formula to calculate XIRR return?
XIRR is a method of calculating SIP investment returns of mutual funds, so the formula of XIRR is “XIRR (value, dates, guess)” and its calculation is always done in Excel sheet.
What percentage of XIRR is considered good in mutual funds?
In the context of a good mutual fund, XIRR is often observed and assessed as a percentage. Therefore, for equity mutual funds, a good XIRR is typically considered to be 12.5% or higher. And 7% or more is good for debt mutual funds.
Read also: What is an Equity Fund? Best Equity Mutual Funds
What is XIRR return in Mutual Fund?
Whenever a person invests in a mutual fund through SIP and sometimes also withdraws some amount from the invested amount for his own use. So to calculate such investment and what percentage of return you are getting annually, for this you need XIRR return formula, yes with XIRR you can calculate your SIP investment correctly.
What should be the XIRR return in Equity Mutual Fund?
In an equity mutual fund, an annual return of 12% or more is considered a good XIRR return.
What should be the XIRR return in Debt Mutual Fund?
In a debt mutual fund, an annual return of 7% or more is considered a good XIRR return.
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Which Mutual Fund has the best XIRR?
Over the past few years, the annual return for all these mutual funds has been more than 13%.
- Axis Bluechip Fund
- ICICI Prudential Bluechip Fund
- HDFC Balance Advantage Fund
- Franklin India Focused Equity Fund
- Tata India Consumer Fund
What does 10% XIRR mean?
If a debt mutual fund is showing a 10% annual return, it is considered very good, but be cautious! Debt funds usually do not provide such high returns, so there might be a risk of deception. On the other hand, if an equity mutual fund is showing a 10% annual return, it could be a poor-performing fund. However, be aware! It might be a good fund, but the 10% return could be due to a temporary reason.
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What is meaning of Annualized XIRR in Mutual Fund?
It is very easy, meaning when you invest in mutual funds through SIP on a monthly/quarterly/yearly basis, the returns of each SIP are compounded according to the time. Therefore, to check the overall return of all your SIPs together, you need XIRR in Mutual Fund.
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