Calculating MF Returns

POSTED BY SK ON February 25, 2013 4:27 pm COMMENTS (5)

How are MF returns calculated for holdings less than an year? If I have a fund in which I purchased units at irregular intervals (not SIP but reinvestment), how is the annualized return (extrapolated?) calculated.

Basically, is there a fool proof way to track the returns of a MF held for less than an year? (Also assuming that the fund is still being held and not encashed)

5 replies on this article “Calculating MF Returns”

  1. Dear Sheetal, against your investment dates, the invested amount ‘ll be a -ve value as money is going out from your pocket. Now for redemption date or the value of your investment as on date, put +ve value.

    Now calculate XIRR & you ‘ll get a no. in decimal. Multiply it with 100 to get %age return.

    Thanks

    Ashal

  2. Karthik says:

    I use valueresearchonline.com ‘s Portfolio feature..

  3. You could use this XIRR calc

    http://freefincal.wordpress.com/xirr-returns-calculator/

    That said with the exception of liquid and ultra short term funds there is not much point in calculating less than 1 yeat returns as performance cannot be judged for such time periods.

  4. Dear Sheetal, yes there is a way. Use the XIRR function of your exl. sheet.

    You ‘ll get the exact return based upon your dates.

    Thanks

    Ashal

    1. Sheetal says:

      Thanks for all the answers. So, using XIRR in excel where we have one data column how do we consider invested value and NAV together at a particular date into consideration?

      Also, for a fund that I still hold how do we fill in the one +ve value that is required to be filled?

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