XIRR is the yearly rate of return on a series of investments and withdrawals made on different dates, such as a SIP.
When money goes into a fund at different times, a simple percentage gain does not show the true yearly return. XIRR, the extended internal rate of return, handles this. It finds the single yearly rate which, applied to each amount for the time it was invested, adds up to the value you have today.
For example, you invest ₹5,000 a month for three years, ₹1.8 lakh in all, and the holding is worth ₹2.2 lakh at the end. The gain is ₹40,000, or 22% of what you put in. But the first instalment was invested for three years and the last for only one month. Taking each one's time into account, the XIRR is about 13% a year.
XIRR works for:
For a single lump sum, XIRR and CAGR give the same answer.
Spreadsheets have an XIRR function that takes a list of dates and amounts, with money invested entered as negative numbers and the current value as a positive one.
Each fund page has its returns, risk, costs, managers and everything it holds.