XIRR - A simple explanation

The meaning of XIRR or the Extended Internal Rate of Return in the context of mutual funds is the calculation of return on investments where numerous transactions occur at various periods. To understand XIRR, we need to first understand CAGR (Compound Annual Growth Rate). XIRR is nothing but the aggregation of multiple CAGRs. The percentage return shown in the last column of the overview section in My Investments is calculated by the XIRR method.

This article was originally published on May 27, 2022, and last updated on August 19, 2022.