Last Updated on January 10, 2023 at 10:16 pm
Use this sheet to automatically track the XIRR of your mutual fund SIP month by month and compare its performance with a benchmark index. In this updated version, the Nifty strategic indices have been included for comparison.
The sheet includes a ‘cumulative outperformance’ feature. This gives you the no of times the fund has out-performed its index on a month by month basis. This is a key indicator of a drop in performance. Read more: Should I continue my SIP in HDFC Top 200 Fund?
What is XIRR? When you invest a lump sum in a volatile instrument (equity, debt fund, gold fund etc.), the average rate at which the investment has compounded is given by the CAGR
When you invest periodically in the same instrument, instead of CAGR, a quantity called the XIRR, is calculated. This can be interpreted as the average CAGR of all the instalments.
Join 32,000+ readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email! (Link takes you to our email sign-up form)
🔥Want to create a complete financial plan? Learn goal-based investing? Exclusive access to our DIY tools? Increase your income with your skills? Enjoy massive discounts on our robo-advisory tool & courses! 🔥
Read more:
Understanding Annualized Return: CAGR and XIRR
If you track this XIRR month after month for a SIP instrument and compare it with corresponding number for a benchmark, it gives you a idea of how consistently the fund has beat the benchmark.
To measure consistency, rolling returns calculation is performed. An automated calculator for this can be found here
A rolling SIP return calculation is hard to compute. Monthly XIRR tracking can be considered as an alternative.
Indices available:
As seen in a recent series of posts, Nifty strategic indices are tougher benchmarks for mutual funds to beat. Therefore, using these benchmarks would be a better way to separate the wheat from the chaff. A couple of these indices were also studied in detail:
- Nifty50 Value 20 Index (NV20) as a mutual fund benchmark
- Nifty Low Volatility 50: A Benchmark Index to watch out for
A total of 53 benchmarks are now available for comparison.These include Nifty TRI, Sensex TRI, BSE 200 TRI, BSE 500 TRI,Nifty, CNX 100, CNX Mid Cap, CNX 500, Sensex, BSE Small Cap, Mid Cap, BSE 100,200, 50 etc.
TRI refers to total returns index. That is the index has been calculated with dividends reinvested.
The user needs to obtain them manually from the S&P website (updated up to 4th April 2016). Links for updating each index is provided in the sheet.
The TRI indices are stored in the sheet while other indices are downloaded from Moneycontrol.
The six strategic indices are:
- NV20 – 20 value stock from within Nifty.
- NQ30 – 30 quality stocks from NSE listing.
- Alpha50 – 50 alpha generators from top 300 NSE stocks (market cap)
- NDivOpp – Top 50 dividend yield stocks from top 300 NSE stocks (market cap)
- NLV50 – 50 least volatile stocks from top 300 NSE stocks (market cap)
- NGS15 – Top 15 growth stocks from top 50% market cap of all sectors with PB and PE greater than the Nifty.
The strategy indices also need to updated from the NSE site (updated currently up to June 30th 2016).
Here are some sample results.
XIRR is calculated only after 1Y from start of the SIP.
On the left, you have the XIRR data for the fund and benchmark, along with the green line which represents the duration of the SIP in years (in both plots). Please note the return is calculated after each installment. So it is cumulative and not monthly performance.
On the right the cumulative percentage outperformance is tracked. Had the funds return dipped below its benchmark then the outperformance graph would have dipped.
These are some previously published results.
Note: XIRR becomes more reliable as the SIP gets older. So ignore the large swings that occur at the start.
All the funds have done pretty well. In terms of consistency, ICICI Blue Chip > QLTE > HDFC Equity.
This tool is now part of the freefincal investor circle. Join the investor circle! Enjoy a 50% discount for a limited time and pay only Rs. 3000 with discount code circle50. You can get lifetime access to several unique tools, discussion forums, and bug fixes.
🔥Enjoy massive discounts on our courses, robo-advisory tool and exclusive investor circle! 🔥& join our community of 7000+ users!
Use our Robo-advisory Tool for a start-to-finish financial plan! ⇐ More than 2,500 investors and advisors use this!
Track your mutual funds and stock investments with this Google Sheet!
We also publish monthly equity mutual funds, debt and hybrid mutual funds, index funds and ETF screeners and momentum, low-volatility stock screeners.
- Do you have a comment about the above article? Reach out to us on Twitter: @freefincal or @pattufreefincal
- Have a question? Subscribe to our newsletter using the form below.
- Hit 'reply' to any email from us! We do not offer personalized investment advice. We can write a detailed article without mentioning your name if you have a generic question.
Join 32,000+ readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email! (Link takes you to our email sign-up form)
About The Author
Dr M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over ten years of experience publishing news analysis, research and financial product development. Connect with him via Twitter(X), Linkedin, or YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation promoting unbiased, commission-free investment advice.Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! ⇐ More than 3,000 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter the market condition is!! Watch the first lecture for free! One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
Our new course! Increase your income by getting people to pay for your skills! ⇐ More than 700 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts and pays you! (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos!
Our new book for kids: “Chinchu Gets a Superpower!” is now available!
Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. - Arun.Buy the book: Chinchu gets a superpower for your child!
How to profit from content writing: Our new ebook is for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only!
Do you want to check if the market is overvalued or undervalued? Use our market valuation tool (it will work with any index!), or get the Tactical Buy/Sell timing tool!
We publish monthly mutual fund screeners and momentum, low-volatility stock screeners.
About freefincal & its content policy. Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified with credible and knowledgeable sources before publication. Freefincal does not publish paid articles, promotions, PR, satire or opinions without data. All opinions will be inferences backed by verifiable, reproducible evidence/data. Contact information: To get in touch, use this contact form. (Sponsored posts or paid collaborations will not be entertained.)
Connect with us on social media
- Twitter @freefincal
- Subscribe to our YouTube Videos
- Posts feed via Feedburner.
Our publications
You Can Be Rich Too with Goal-Based Investing
Published by CNBC TV18, this book is meant to help you ask the right questions and seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now.Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want
This book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at a low cost! Get it or gift it to a young earner.Your Ultimate Guide to Travel
This is an in-depth dive into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, and how travelling slowly is better financially and psychologically, with links to the web pages and hand-holding at every step. Get the pdf for Rs 300 (instant download)