Hi All,
I googled some information about calculating XIRR and YTD and found below article useful:
http://whitecoatinvestor.com/how-to-calculate-your-return-the-excel-xirr-function/
Following the about link. I was trying to calculated the XIRR for the investment done in 2011 by me. The data is as below:
| Date | Cash flows | |||
| 9/8/2011 | 1000 | invested | ||
| 11/10/2011 | 1000 | invested | ||
| 11/14/2011 | 1000 | invested | ||
| 12/12/2011 | 1000 | invested | ||
| 12/31/2011 | -3687.60015 | Assuming Redeeming | ||
| Type | Return | Formula | ||
| XIRR | -0.40646 | XIRR(J17:J21,G17:G21, 10%) | ||
| XIRR % | -40.6464 | |||
| YTD | -0.15035 | SUM((1+XIRR(J17:J21,G17:G21))^((DATE(2011,12,31)-DATE(2011,9,8))/365)-1) | ||
| YTD % | -15.0348 | |||
| 15% of 4000 | 601.392 | (15.0348*4000)/100 = 601.392 | ||
| Diff between amt invested and final amount | 312.3999 | 4000-3687.60015 = 312.3999 | ||
Now the thing is that using XIRR I am getting YTD as -601 and \”difference between invested amount and final total amount is -312. I am not able to tally both amount.
I am not sure where I am wrong.. Can someone point out the mistake.