How to calculate your mutual fund profit..!?
How to calculate your mutual fund profit..!?
Generally before investing in any mutual fund, it is very important to know the past performance of that fund. CAGR calculates the annual growth rate of an investment over a specified period. This calculator is a common tool to calculate the return given by a particular mutual fund scheme. It shows the average annual return provided by the fund over some time, assuming that the return will increase every year. For example, if you invest in a mutual fund for 5 years, CAGR indicates the average annual return of the fund over the past years. With the help of CAGR, the overall annual growth or decline of mutual funds can be known.
Generally before investing in any mutual fund, it is very important to know the past performance of that fund. CAGR calculates the annual growth rate of an investment over a specified period. This calculator is a common tool to calculate the return given by a particular mutual fund scheme. It shows the average annual return provided by the fund over some time, assuming that the return will increase every year. For example, if you invest in a mutual fund for 5 years, CAGR indicates the average annual return of the fund over the past years. With the help of CAGR, the overall annual growth or decline of mutual funds can be known.
Here's how it calculates XIRR for your SIP portfolio/ investments:
Step 1: Enter your investment date in the first column
Step 2: Enter all your investment transactions in the next column. Each transaction is marked with a minus sign (-), meaning all outflows such as investments and purchases are marked negative. All credits such as withdrawals and withdrawals will be marked positively.
Step 3: In this step specify the present value of your investment and the withdrawal date.
Step 4: Use the XIRR formula in Excel in this step. XIRR = (Investment Amount, Date) This metric is used to estimate investment profitability. This method works as a special discount rate considering the changing value of money over time. In this method, the cash flows are discounted at a certain rate when the cash flows are known to be worth the current investment. An investor can use IRR to calculate returns on their SIP, SWP, and lump sum investments.
Step 1: Enter your investment date in the first column
Step 2: Enter all your investment transactions in the next column. Each transaction is marked with a minus sign (-), meaning all outflows such as investments and purchases are marked negative. All credits such as withdrawals and withdrawals will be marked positively.
Step 3: In this step specify the present value of your investment and the withdrawal date.
Step 4: Use the XIRR formula in Excel in this step. XIRR = (Investment Amount, Date) This metric is used to estimate investment profitability. This method works as a special discount rate considering the changing value of money over time. In this method, the cash flows are discounted at a certain rate when the cash flows are known to be worth the current investment. An investor can use IRR to calculate returns on their SIP, SWP, and lump sum investments.