Can I Use XIRR for SIPs and Partial Withdrawals?

Yes, XIRR is ideal for SIPs and partial withdrawals. It accurately calculates returns when you invest regularly through SIPs or redeem some units before the investment matures.

How Is XIRR Different From CAGR?

XIRR and CAGR serve different purposes. XIRR is more versatile and is used when there are irregular cash flows over time. In contrast, CAGR is simpler and best suited for investments with a single lump-sum amount and consistent growth over a fixed period.

What Is XIRR in Mutual Fund Investments?

XIRR in mutual fund investments stands for Extended Internal Rate of Return. It is a method used to calculate returns when investments and withdrawals occur at irregular intervals. XIRR reflects the annualized return on your investments by considering multiple cash inflows and outflows over time.

Investment & Financial Planning

Everything You Need to Know About XIRR in Mutual Funds

By Ritesh Jain |Last Updated: February 4, 2026

Everything You Need to Know About XIRR in Mutual Funds

For investors, returns from mutual funds or other schemes have always been a basic benchmark. It showcases how much you gained or lost during a specific investment duration. XIRR, or Extended Internal Rate of Return, is a tool that helps you determine how much money you have grown from your investments, considering your investments or withdrawals at different times. It is an easy way to know your returns when there is irregular cash flow.

Want to know more about XIRR in mutual funds? Read the blog and get all the information about it, from its meaning to its calculation and more.

Ritesh Jain(Tax Expert)

Mr. Ritesh has 20 years of experience in taxation, accounting, business planning, organizational structuring, international trade financing, acquisitions, legal and secretarial services, MIS development, and a host of other areas. Mr Jain is a powerhouse of all things taxation.

Frequently Asked Questions

Calculating XIRR quarterly helps you stay informed without reacting to short-term market fluctuations. For long-term goals such as retirement planning, annual or semi-annual calculations are usually sufficient.

A good XIRR depends on the type of mutual fund. Equity mutual funds generally offer higher XIRR but come with higher risk, while debt mutual funds provide lower but more stable returns.

A negative XIRR indicates that the current value of your investment is lower than the total amount invested. In simple terms, it reflects a loss.

XIRR is more accurate than simple return formulas because it factors both the timing and amount of each investment. It further helps in getting a real picture of your annual growth.

No, you do not need to calculate XIRR manually. You can easily calculate it using Google Sheets or MS Excel using the formula, i.e., =XIRR(values, dates, [guess]).

Everything You Need to Know About XIRR in Mutual Funds

Frequently Asked Questions

How Often Should I Calculate XIRR for My Investments?

What Is Considered a Good XIRR for Mutual Funds?

What Does a Negative XIRR Indicate?

Why Is XIRR More Accurate Than Simple Return Formulas?

Do I Need to Calculate XIRR Manually?

Everything You Need to Know About XIRR in Mutual Funds

Frequently Asked Questions

How Often Should I Calculate XIRR for My Investments?

What Is Considered a Good XIRR for Mutual Funds?

What Does a Negative XIRR Indicate?

Why Is XIRR More Accurate Than Simple Return Formulas?

Do I Need to Calculate XIRR Manually?