What is XIRR?
Extended Internal Rate of Return — the true annualised return on investments with irregular cash flows.
Understanding XIRR
XIRR solves for the discount rate that makes the net present value of all cash flows — including the initial investment(s), any additional purchases, redemptions, and the current portfolio value — equal to zero.
Because mutual fund investors make investments and withdrawals on irregular dates, XIRR is more accurate than simple annualised returns for calculating actual performance.
XIRR is the industry-standard metric for presenting returns to clients who have made multiple investments over time — it gives a meaningful, comparable figure equivalent to a fixed deposit or any other annualised return metric.
“For Indian IFAs, a clear understanding of xirris essential to managing a compliant and profitable advisory practice.”
Why XIRR Matters for Your Practice
Staying on top of xirrhelps you maintain compliance, serve clients accurately, and build a sustainable advisory business. Fin-Soft's software is built specifically for the needs of Indian IFAs and corporate distributors — covering everything from portfolio tracking to trail reconciliation.
Fin-Soft Solutions' software suite — Wealth Track Auto, AMFI Web, and Online Transaction — automates the workflows related to xirr for investment advisors and corporate distributors across India.
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