Overall Investment Performance

[Anant_singhvi]

Where do you maintain your portfolio which can provide XIRR returns.

[SrikanthNakka]

Hi Siva,

when can we expect these features and new version of console?

[siva-reddy]

@SrikanthNakka

when can we expect these features and new version of console?

Tagging is already available on console, which exact feature you are referring here?

[Rajat2805]

@siva-reddy looks like we are missing IRR calculation within Console/Zerodha.

For e.g. we do get the absolute return calculated but nowhere in Console do we have XIRR (Extended Internal Rate of Return) calculated which is far more important calculation. Refer to example below.

IRR takes into account Cash infusion in an account with respect to the date the cash is deposited and then calculates the return accordingly whereas absolute return just divides the return amount by total investment.

AAFM India is a standard setting body set up by AAFM USA for Wealth...

Thanks,
Rajat

[Srinivas_Janardhanan]

@siva-reddy is this something thats still on the radar? I downloaded 4 years of trade-book and realised that its not of any use because of the outflows to Coin SIP. Since, Zerodha has a more holistic view it can be easily done at your end rather than us trying to manually compute it.

[siva-reddy]

@Srinivas_Janardhanan

I downloaded 4 years of trade-book and realised that its not of any use because of the outflows to Coin SIP.

For the same reason it is difficult to compute for us also, and payin and payouts also involved.

[Srinivas_Janardhanan]

Hey @siva-reddy
Ya I get the problem here, but, it would be beneficial to long term investors to at-least get a view of the XIRR at a scrip level for just his current holdings, similar to how coin shows at a per fund level. Should be a good middle ground will help long term investor gauge their investment performance. Right now we have just the absolute value.

[siva-reddy]

@Srinivas_Janardhanan

Ya I get the problem here, but, it would be beneficial to long term investors to at-least get a view of the XIRR at a scrip level for just his current holdings, similar to how coin shows at a per fund level. Should be a good middle ground will help long term investor gauge their investment performance. Right now we have just the absolute value.

Okay, will check on the possibility with the team.

[Srinivas_Janardhanan]

Hey @siva-reddy Did the team get back with feasibility of implementation?

[Jason_Castelino]

For the ones who want to calculate XIRR for the whole account.

1. Download funds statement from the time u opened zerodha account till today in excel format.
2. Filter vouchers by bank receipts and bank payments.
3. Keep only date and amount column.
4. Bank receipt will be cash outflows for you. So change it to negative sign.
5. Get all amounts in one column.
6. Last line insert today’s date I date column and account value which you find on console in amount column.
7. Following line use XIRR formula.

All of this takes max 15 mins even if you have 10 years data. I did it for 4 years and it took only 10 mins. I have pay in and payout almost every day.

You can update this excel sheet every month by adding transactions only of the last month.

Instead of waiting for 20 months for this feature, do it yourself in 20mins.

PS. I even add dividend received as cash inflows.

[RajendraPatil]

Thanks @Jason_Castelino for neat and clean instructions. Pretty useful

@Nakul

We’re working on the next version of Console in which we’re trying to make it easier to track your portfolio. Net payin and XIRR are already part of our list of things to do, which you can expect in the next version.

Ofcource still it would be nicer when Zerodha dishes out new console.

[Jason_Castelino]

If I could do it in excel, using a simple formula, I do not know why is it difficult for a team of professionals at Zerodha.
And if somebody wants XIRR from a particular date, then Account balance as on that date becomes initial cash outflow.

[ZeroIndian]

@Jason_Castelino

I do not know why is it difficult for a team of professionals at Zerodha.

It may not an issue of difficulty, but a matter of priorities. This may not be high on the list of things that Zerodha wants to do, for one reason or another.

Also, from what I have seen so far, I feel metrics/reporting [1] is the part of Zerodha which is the least “Zerodha-like”. So this delay looks par for the course!

[1] I don’t know the exact term; what I mean is: stuff corresponding to computing various metrics and presenting these to users.

[Jason_Castelino]

In one of the above replies, it is specifically mentioned that it is difficult for them to do it. Otherwise they can mention that its not in priority as of now. Its totally understandable.

[ZeroIndian]

@Jason_Castelino

In one of the above replies, it is specifically mentioned that it is difficult for them to do it.

That reply says it is difficult for Zerodha because they don’t have access to some type of data. At least, this is what I understood from that reply.

You have provided an algorithm that does the task, based on data which we can get from Zerodha.

Can both of these be correct at the same time? To me, it looks not.

[Robin_Ghoshal]

The easiest way is to download the tradebook and upload it to some other portfolio tracker. This is what I do.

[Jason_Castelino]

@Robin_Ghoshal

The easiest way is to download the tradebook and upload it to some other portfolio tracker. This is what I do.

What about the idle funds that you keep in your trading account. Sometimes when we have leveraged position we do keep some buffer cash. Moreover how will you calculate return on the basis of margin that’s blocked?

[Jason_Castelino]

@Jason_Castelino

For the ones who want to calculate XIRR for the whole account.

I had created a separate post for this later.

Know your XIRR : Excel Calculations

Profit is one of the most important objectives of any Investor or trader. Calculating your profit can not only help you determine your level of success, it also provides information on how you can better your returns. Profit being an absolute value, it doesn’t give you the right picture. Profit should always be seen in relative terms to the investment made. In stock market, we frequently add and withdraw funds. Our investment levels won’t remain same all the time. Hence the most appropriate in…

[Robin_Ghoshal]

I try to keep most of the idle fund in liquidbees, for ease of calculation in case of equities. For F&O I maintain a sheet manually and mostly I keep my cash in some fund and pledge, but yes there would be some idle cash left, I try to keep it to minimum.
Just went through your thread of your excel sheet, looks like that’s more accurate since that is based on the total cash flow in the account.

[Jason_Castelino]

@Robin_Ghoshal

total cash flow in the account.

Yes. Some of them calculate ok the basis of margin utilised. Some of the option buyers say they make 10 percent return. But the return is computed in capital employed and not the total amount in the trading account.
To see if you are doing better than the bench mark index I strongly feel we should do it at account level. If I am not outperforming then I can just buy index funds and forget.