XIRR vs absolute return
Absolute return is total growth. XIRR annualises it, accounting for money going in and out at different times. For any investment you added to over time — every SIP — only XIRR gives a comparable number.
What it means
Absolute return is total growth. XIRR annualises it, accounting for money going in and out at different times.
Why it matters to a household
For any investment you added to over time — every SIP — only XIRR gives a comparable number.
Where it trips people up
Comparing a five-year absolute return against a one-year figure and concluding one is better.
In an Indian household
Most Indian fund platforms report XIRR for your portfolio. It is the number to use when comparing across holdings.
Where FamTally comes in
FamTally is a free AI-driven money manager built for Indian families. It holds your loans, income, expenses, assets, insurance and goals in one place, forecasts five years ahead, and lets you ask an assistant questions about your own numbers rather than looking up general advice. Everything on this page is the kind of thing it works out for you automatically.
Stop doing this in a spreadsheet
FamTally keeps your loans, income, expenses, assets, insurance and goals in one place, forecasts five years ahead, and answers questions about your own numbers. Free, and built for Indian families.
Start freeQuestions people ask
XIRR vs absolute return
Absolute return is total growth. XIRR annualises it, accounting for money going in and out at different times.
Why does it matter?
For any investment you added to over time — every SIP — only XIRR gives a comparable number.
What do people usually get wrong?
Comparing a five-year absolute return against a one-year figure and concluding one is better.
Is there anything India-specific?
Most Indian fund platforms report XIRR for your portfolio. It is the number to use when comparing across holdings.