Investment
XIRR
Extended Internal Rate of Return calculates returns when money is invested or withdrawn at multiple points in time.
What it means in practice
XIRR weights every cash flow by how long it stayed invested, which makes it the correct return measure for SIPs, SWPs and top-ups. Most Indian fund houses and brokers report XIRR on your portfolio statement.
Related terms
CAGR
Compound Annual Growth Rate represents the mean annual growth rate of an investment over a specified period longer than one year.
SIP
A Systematic Investment Plan invests a fixed amount in a scheme at regular intervals.
NAV
Net Asset Value is the per-unit market value of the securities held by a mutual fund scheme.