Your SIP against the index

Enter what you put in each month, when you started and what it is worth today. You get your XIRR, and what the same instalments, bought into the Nifty 50 on the same dates, would be worth now: the fairest test there is of whether your choices added anything.

Your numbers

Change anything; the result updates as you type.

Result

Ahead of the index, or behind it?

Either way, the index is the fair test: it is what the same money could have done with no choices at all. If you hold a lot of funds and stocks, the map shows what they add up to; MindForge measures each of its books against its own index, every cycle, and publishes them all.

Map what you own, privately

See every cycle

How it is calculated

Each month from January of the year you chose, an instalment is placed on the first trading day of the month, raised once a year by the step-up you set. Your XIRR is the one yearly rate at which all those instalments, each compounded for as long as it was invested, add up to the value you typed.

Σ instalment × (1 + XIRR)^{years invested} = value today

The index side buys the Nifty 50 with the same rupees on the same days, at its closing level, and values the units at its latest close. Its XIRR comes from the same formula.

Why XIRR, not CAGR, for a SIP

A CAGR joins one starting sum to one ending sum. A SIP is dozens of sums, each invested for a different time: the first instalment has been at work for years and the last for days. XIRR weights each rupee by its own time, so it is the rate your statement’s figure really represents.

What this leaves out

Dividends on the index. It is the price index, so the index side is understated; an index fund would have earned them, less its costs.
Tax and exit loads, on both sides, unless the value you type is already after them.
Your exact dates. Instalments are taken on each month’s first trading day; if yours fell on another day, the figures move a little.

Questions

What does XIRR mean for a SIP?

XIRR is the yearly return that accounts for when each instalment went in: a rupee invested in 2018 has had longer to grow than one invested last month. It is the fair way to state the return on money that went in month by month.

Why compare my SIP with the Nifty 50?

Because it is what the same rupees could have done with no choices at all. If your funds and stocks beat it on the same dates, your choices added something; if they trailed it, the choices cost you. It is a test, not a recommendation of an index fund.

Does the index figure include dividends?

No. It is the Nifty 50 price index, so dividends are left out and the index side is understated. An index fund would have earned the dividends, less its costs.

Is my number sent anywhere?

No. Everything is worked out in your browser, and nothing you type is stored or sent.

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