When you invest in mutual funds through SIPs, lump sum investments, or make withdrawals at different times, your returns are spread across multiple dates. Because of this, a simple return percentage does not accurately show your real performance.
XIRR, which stands for Extended Internal Rate of Return, calculates your actual annualised return by considering both the amount invested and the exact dates of each transaction. On FYERS, XIRR reflects the true performance of your mutual fund investments based on your complete transaction history.
XIRR is a method used to calculate returns when there are multiple investments and withdrawals made on different dates.
It takes into account:
Each transaction is treated as a cash flow that occurred on a specific date.
The current NAV value of your mutual fund holdings is treated as the final cash inflow in the XIRR calculation. This ensures that both realised returns from redemptions and unrealised returns from your remaining holdings are included.
On FYERS, the XIRR displayed for mutual funds is calculated since inception. This means it considers all transactions starting from the very first investment made in that mutual fund up to the current date. The calculation includes every investment, every redemption, and the current NAV value from the beginning of the investment journey.
Since money invested earlier stays invested for a longer time, it has a greater impact on returns. For example, ₹10,000 invested two years ago affects your return more than ₹10,000 invested last month. By adjusting for the timing of each transaction, XIRR gives a more realistic and accurate measure of performance.
A positive XIRR is still possible even if the current holdings are showing a loss.
If you have already redeemed part of your investment at a profit, the amount received from those redemptions is included in the XIRR calculation. Even if your remaining holdings are currently showing a loss, your overall return can still be positive.
If the total of all your past redemptions plus the current value of your remaining investment is higher than the total amount you originally invested, your XIRR will be positive.
This is because XIRR considers all historical investments, redemptions, and the current NAV value together. It does not depend only on the present unrealised gain or loss.
To view the overall XIRR on the FYERS App:
To view XIRR for a specific fund:
To view the overall XIRR for your mutual fund holdings:
To view XIRR for an individual mutual fund:
| Scenario | Explanation |
|---|---|
| XIRR is negative | The total of your current holdings and past redemptions is lower than the total amount you invested. |
| XIRR is very high | If the investment duration is short, strong short-term gains may appear high when annualised. |
| XIRR differs from another platform | Differences in transaction dates, NAV treatment, or how cash flows are recorded can result in variations. |
| You transferred mutual fund holdings to FYERS | If historical purchase NAV, transaction dates, or investment values were not accurately recorded during transfer, the XIRR may not fully reflect actual performance. |
| Investment duration is very short | Annualised return may not accurately represent long-term performance trends. |
Last updated: 23 Feb 2026