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.
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.
Try this out for your own holdings and let me know how the tool can be improved.
Download the freefincal Mutual Fund SIP XIRR Tracker (Aug 2017)
Download the latest version of the Mutual Fund SIP XIRR Tracker (April 2016)
Previous version: Mutual Fund SIP XIRR Tracker (Feb 2016)
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About the Author
M. Pattabiraman is the co-author of two books: You can be rich too with goal based investing and Gamechanger. “Pattu” as he is popularly known, publishes unbiased, promotion-free research, analysis and holistic money management advice. Freefincal serves more than one million readers a year with numbers based analysis on topical issues and has more than a 100 free calculators on different aspects of insurance and investment analysis, including a robo advisory template for use by beginners. Contact information: freefincal {at} Gmail {dot} com He conducts free money management sessions for corporates (see details below). Previous engagements include World Bank, RBI, BHEL, Asian Paints.Content Policy
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Dear Pattu-Sir, why is the tool not working for PPFAS or ICICI Prudential Value Discovery. For PPFAS, it is not generating enough data, maybe because the age is too old. But in case of Value Discovery, the dropdown is not populating, in fact the same issue for ICICI Prudential Balanced Advantage too.
Sorry, the age of PPFAS is not too old. I missed the “not”
It is listed as “ICICI Prudential Discovery Fund”. So type “ICICI Prudential Dis” to see the fund in the fund in the drop down.
Dear Pattu-Sir, why is the tool not working for PPFAS or ICICI Prudential Value Discovery. For PPFAS, it is not generating enough data, maybe because the age is too old. But in case of Value Discovery, the dropdown is not populating, in fact the same issue for ICICI Prudential Balanced Advantage too.
Sorry, the age of PPFAS is not too old. I missed the “not”
It is listed as “ICICI Prudential Discovery Fund”. So type “ICICI Prudential Dis” to see the fund in the fund in the drop down.
Sir i cant dowload from the link for Download the Mutual Fund SIP XIRR Tracker. can you provide me with the other link please
Which SIP type one should select: Normal or Perpetual?
For investing? Normal and for 3 years. Review later
Thanks for a reply!
Yes for investment.
If I select Type as Normal and Period: 3 years.. can I extend it after 3 years if it’s performance is good?
I am comparing Axis LTEF Direct Growth with BSE 200. in output its showing blank graph…
What went wrong?
Since it is a direct plan, use a start date after 1st Jan 2013
Sir, I don’t see SBI Emerging Business fund in the database and not able to add it through “Add new AMFI record”
Sorry t bother you, got it, was searching with SBI emegerging instead of SBI MSFU Emerging. Thanks
Dear Pattu Sir
can you please tell me what is duration? let me know how to interpret duration Vs percentage outperformance?.
Duration is only the time for which the SIP has been running. It has nothing to do with mutual fund performance.
I could not find UTI Equity Fund Growth in the list.
The one in list is UTI Equity Fund Income Option. I tried with this fund for trial and showing different XIRR overall than what I get from CAMS otherwise.
how to update the indices from s&p?, you said the link is provided in excel sheet, i cant see it.
The link should be available in each data sheet. If you cannot find them, perhaps they are hidden. You can unhide the sheets.
thanks i find it. perhaps you should make it as link in main page to update indices automatically. just feedback!
Dear Mr Pattu,
I was trying to use the MF SIP XIRR tracker Aug’17.
after inputting the dates (period of SIP) the result displayed is only for Jan 1900…..
not showing the period for which i have given the input.
am i making any mistake while keying in the data please.
i was trying for BSL Pure Value fund for teh period 01-08-2016 to 31.07.2017 for a SIP value of 2000
As mentioned you need a longer duration to check. Let me know how that goes.
From input tab i filled all details and when i click on ‘Analyse both fund and index!’, i get below error.
Microsoft Visual Basic
Run-time error ‘438’:
Object doesn’t support this property or method