November 05, 2024
(Tuesday)
Friends, On this auspicious day of Diwali, letās discuss XIRR (Extended annualised rate of return)⦠This is updated formula of CAGR because it takes into account multiple investments at different points of time⦠Zerodha has this useful feature readily available at their Console (Console > Portfolio > Holding > View XIRR)⦠It is said that 15-20% XIRR (CAGR) is very good in Equity Markets⦠Nifty gave 14% CAGR in last 2 yearsā¦My Portfolio XIRR (CAGR) has been 112% in last 2-3 years ⦠See attached Screenshot of my Portfolio XIRR (CAGR) ⦠Friends, there are 15 crore demat accounts in India, then there are highly powerful and resourceful FIIs & DIIs & Mutual Funds⦠So every investor is competing with all above crores of investors in Stock market to make money⦠Even if you outperform Nifty or Sensex by 2-3% consistently, you are beating all the above 15 crores of individual investors, FIIs and DIIs and Mutual Funds (that is why making money consistently in Stock market is so difficult)⦠And my portfolio did beat these Crores of informed investors, FIIs, DIIs, Mutual Funds by 98% CAGR every year (112% ā 14%) in last 2-3 years.. Happy Investing and Happy DiwaliĀ š„

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