XIRR (returns on SIPs and irregular cash flows)
The annualised return that accounts for the exact dates and amounts of every instalment.
What it measures
For a SIP, money goes in on many dates, so a simple CAGR does not apply. XIRR finds the single annual rate at which all instalments, compounded to the end date, equal the final value.
Formula
Σ cash_flow_i ÷ (1 + r)^((date_i − date_0)/365) = 0, solved for r
How MFIC calculates it
In the SIP Analyzer each instalment is invested at that day's NAV (or the previous NAV date), the final value is taken at the end date, and XIRR is solved numerically. MFIC repeats this for every start month to show the full range of historical SIP outcomes, not just one.
Limitations
Ignores exit loads, stamp duty and taxes. Historical XIRRs describe past sequences only.
Use it in MFIC
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Related: CAGR (compound annual growth rate) · Rolling returns · Methodology