In mutual fund returns computation, absolute returns and XIRR (Extended Internal Rate of Return) are two different measures used to evaluate performance. Absolute returns represent the total percentage gain or loss from an investment over a specific period, regardless of the time involved. Absolute returns are simple and suitable for investments held for a specific period without interim investments or withdrawals. It does not take the time factor into consideration, making it less ideal for comparing investments of different durations. XIRR is a more sophisticated measure of return that accounts for the timing of cash flows. It is used to calculate the annualized return on investments involving multiple cash flows, such as systematic investments (SIP), redemptions, or irregular investments. XIRR is ideal for evaluating returns on investments with multiple cash flows at different times, such as SIPs or lump-sum investments with periodic withdrawals. It helps in understanding the true growth rate of an investment when time value is a key factor.
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I hold ABC.
The mutual fund dividents
How it is taxed as per slab rate or capital gain ?
Mutual fund dividend is taxed like bank interest - Income from Other sources
Sir,what is the difference between absolute return and XIRR ? Which is the correct percentage?
In mutual fund returns computation, absolute returns and XIRR (Extended Internal Rate of Return) are two different measures used to evaluate performance.
Absolute returns represent the total percentage gain or loss from an investment over a specific period, regardless of the time involved. Absolute returns are simple and suitable for investments held for a specific period without interim investments or withdrawals. It does not take the time factor into consideration, making it less ideal for comparing investments of different durations.
XIRR is a more sophisticated measure of return that accounts for the timing of cash flows. It is used to calculate the annualized return on investments involving multiple cash flows, such as systematic investments (SIP), redemptions, or irregular investments. XIRR is ideal for evaluating returns on investments with multiple cash flows at different times, such as SIPs or lump-sum investments with periodic withdrawals. It helps in understanding the true growth rate of an investment when time value is a key factor.
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I am holding a lumpsum on SBI dvdnd yld fund
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