POSTED BY February 12, 2014 2:28 pm COMMENTS (7)

ONKindly help me in calculating mutual fund return calculations. Example, if i start a SIP from Jan-2013 of amount 10000/- per month into any XYZ mutual fund, and I want to calculate how much return my fund has given over last one year i.e. till Jan-2014. How I can calculate. As we know the SIP is fixed for last 12 months, where as the No. of accumulated units is different in every months which depends on NAV of that fund, is that we can use any formula to derive the return calculation. Kindly explain. Thank you.

Also, over different years, how to calculate CAGR of the same fund?

Dear Debo, 2 factors should decide when to book profit from a performing fund.

1. You are already well passed your target amount.

2. Some 2-3Y before the actual requirement, when the return is within your expectation.

Thanks

Ashal

Thank you Hemanth for providing the quick link on fund snapshot.

Thanks Ashal.

Follow up question on Booking Profit:

As on Year on Year, we can calcucate the XIRR function (which will give actual return of your fund) and CAGR (overall return of year on year for last X yrs of your fund), how to book profit from that. From Financial planning point of View, before 3-5 years from goal years, we should start booking profit/and investment should be re-directed to Debt oriented funds from Equity. Therefore, if my equity fund from last 10 yrs has earned me a CAGR of 8-10% is that correct to be moved from the fund and re-direct investment through SWP to a Debt oriented fund (capital being safe). Is my understanding correct? Thanks

Dear Debo, yes is the answer.

Thanks

Ashal

CAGR calculation

invested amount 69000

final amount 72570.23

no. of years 1

Hi Ashal,

Thank you for your response. Kindly let me know if my calculation is correct:

Date Amount

01-Apr-13 4000

01-May-13 2000

01-Jun-13 6000

01-Jul-13 17000

01-Aug-13 0

01-Sep-13 8000

01-Oct-13 8000

01-Nov-13 8000

01-Dec-13 8000

01-Jan-14 8000

14-Feb-14 -72570.23

XIRR = 11.62% [=XIRR(B1:B11,A1:A11)] B=Amount; A=Date

CAGR = 5.17% [CAGR calculation: =(B2/B1)^(1/B3)-1]

Kindly confirm if this is correct.

If you wish to finish your work simple, find the fund which you wish to know about in valueresearchonline.com and check the snapshot of the fund.

Below is the snapshot of ‘SBI Emerging Business’ from inception of the fund. You can find the same for any fund.

http://www.valueresearchonline.com/funds/newsnapshot.asp?schemecode=2415

Dear Debo, please use XIRR function of exl sheet in your PC.

Thanks

Ashal