XIRR

XIRR (Extended Internal Rate of Return) is the annualised return on an investment where money goes in or out on irregular dates. A Systematic Investment Plan (SIP) has many instalments on different dates, so a simple average misstates performance. XIRR weights each cash flow by how long it actually stayed invested, producing one comparable yearly percentage. Most fund statements and calculators report it. Read it as a record of what already happened: past XIRR does not indicate future performance, and mutual fund investments are subject to market risks.