Understanding XIRR
Absolute returns and CAGR (Compound Annual Growth Rate) don't give you the correct picture when you invest or withdraw money at irregular intervals (like SIPs or random top-ups). XIRR is the most accurate way to measure returns for mutual funds and stocks.
Intelligence Insight: Always enter money going OUT of your pocket (investments) as a negative number, and money coming IN (withdrawals, dividends, or the current portfolio value) as a positive number.