How to calculate return % ?

POSTED BY Saji ON February 23, 2014 8:34 pm COMMENTS (7)

Hello all,

We have invested 75,000 in HDFC Top200 in Nov 2013. It’s been fifteen months since. So the return% is 12.16 if I sell it today. Is my calc correct?

Thanks,
Ramya

7 replies on this article “How to calculate return % ?”

  1. Saji says:

    Thanks All.

  2. Sumit says:

    Hi Saji,

    According to the figures given by you, its around 12% absolute return in 15 months, and around 9.5% annualised return, which is similar to fixed income product returns. So stay invested longer to maximize benefit.

    Also, due to the volatality nature of the market, it’s always prudent not to invest lumpsum, and invest systemetically and regularly, may be a fixed ammount every month, by SIP. Or if you fell market has fallen enough then invest more to add more mf units.

    Thanks
    Sumit

  3. ashalanshu says:

    Dear Ramya, please use XIRR function of exl sheet in your PC. This ‘ll give you the annualized return on your basic investment.

    Thanks

    Ashal

  4. ashalanshu says:

    Dear Ramya, by the way from Nov 2013, it’s just 3 months not 15. 🙂

    Thanks

    Ashal

    1. Saji says:

      Thanks Ashal. It was a typo. I meant 2012.

  5. ashalanshu says:

    Dear Ramya, 12.16% is your total gain or CAGR?
    Here CAGR means – Compounded Annual Growth Rate aka compound interest in day to day language.

    Thanks

    Ashal

    1. Saji says:

      Sorry Ashal. I didn’t give enough info.

      The value of the fund now is 86400(75K invested in Nov 2012). That’s how I calculated 12.16% increase. Hope I answered your query.

      Thanks
      Ramya

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