XIRR stands for Extended Internal Rate of Return. It is a tool used to calculate the return on investment when there are multiple cash flows occurring at irregular intervals. These cash flows may include both investments and withdrawals, reflecting the dynamic nature of one’s portfolio over time. XIRR provides an annualized return, making it easier to compare the performance of different investments or asset classes on a yearly basis.
It may sound a dauting task to find out your overall portfolio returns but we have made it easier for you to do it yourself, you can use our Calculator incase the data is limited or you can simply use excel sheet to perform the task. A quick video demonstrating this process on Excel sheet: