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.



  2. Karthik says:

    I use ‘s Portfolio feature..

  3. You could use this XIRR calc

    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.



    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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