Hello there,
Seems like there is a problem with XIRR calculation in coin app. When my preference is set to XIRR in coin app, it shows me 0% gain and 0% loss for all my MF.
It was working nice and I liked that feature. But as it’s broken i am facing difficulty in gauging the performance of different MFs that I have invested in.
Please fix it. Would appreciate it.
Hey @pandavpatel
Measuring your returns in XIRR makes sense only for SIPs where the duration of investments is more than 1 year.
You can view your Absolute returns on the Coin app by setting it as a preference by following this procedure.
Thanks for quick response. I understand what XIRR is. What I do not understand is why it makes sense only for SIP which are older than one year??
Let say I have invested in debt fund more than one time as lumpsum during different time. How can I access it performance?? Because absolute percentage would be mis leading in that case.
For example I invest 1000 rs in a debt fund on 1Jan 2018 and invest 5000 in the same fund on 4 July 2018. If on 6 Aug value of my units in that debt fund is 6100, how can I gauge it’s performance???
XIRR is useful in case of above scenario. I used to see it populated correctly in past on coin app. I have found it broken for last few weeks only.
Yes, its broken for some time now. Even in the website, I can see 0 for XIRR.
Perhaps there’s some change in algorithm to calculate XIRR. I’m not buying less than a year theory, as it used to show up correctly till about a couple of weeks back.
Agree. Less than one year theory is absurd.
Don’t buy it. You clearly seem to be more knowledgeable than anyone else.
If you don’t know something, ask, search, find and learn. One shouldn’t rush to judgements!
If you investment is more than one year and it is lumpsum - you use CAGR
If you investment is more than one year and it is a SIP - you use XIRR. It is nothing but an aggregation of CAGRs.
If your investments are under one year, then you will have to use Absolute returns. How can you annualized them.
More here
If I have monthly SIP in a fund and if I have invested for two months. How is my absolute return calculated??
Is that the right way to gauge performance of my SIP??
Thanks for enlightening me!!!
According to you for all kind of investments (lump sum or SIP) which are less than one year, absolute return is the measure to go with. Correct??
But if I have SIP for past 2 to 11 months then how can absolute return give me correct picture??
Do you want to say that XIRR for SIP of 11 months is not a meaningful measure and only when SIP is for over 12 months XIRR becomes meaningful measure??
I think I understand CAGR and XIRR correctly. According to me both of them makes perfect sense for investment older than one year or under an year.
CAGR is for lump sum investment and XIRR is for SIP or irregular multiple investments in same fund/asset. Irrespective of duration of the investment. You can annualize your returns even when it is for less than a year. Only if you annualize, it will give you clear picture of returns that you may get if you stay put for a year. And then you can compare it with other investment options.
Can you check now on your coin app and confirm.
It’s fixed now. Thanks!!
Is it back to the old way now where they show 0% for less than a year SIPs?
I also see at 0% now. Is it broken again?
Could you DM your client id? Will have this checked.
Yes, we have changed this to 0% if the investment is less than a year old.
@Neelesh any particular reason why XIRR is being shown as 0% if the investment is less than a year old?
I am asking so because after importing my portfolio CAS on Kuvera I can see there in XIRR even for investments less than a year old.
Isn’t it better to let the user choose which way he wants to look at, whether XIRR or Absolute returns?
Yeah, that is a wrong metric to choose for less than a year. For ex: if return is 5% in one month XIRR annualizes it and show as 12*5 = 60%. Showing 60% is not correct, I believe.
Understood. Thanks for explaining.
In that case wouldn’t it be better to show the absolute value if investment period is below 1 year. And once it is above 1 year XIRR kicks in. Maybe colour code to differentiate Abs and XIRR? What do you think?
I think this is how Coin was showing earlier?
Why I am in favour of this Abs < 1 yr and XIRR > 1 yr is because when people look at 0% they don’t get the real outlook. I know technically, on paper, 0% XIRR is correct. But people when they see 0% they perceive it in a different way.
Are you getting what I am saying?
Also this.
Even if you show XIRR as 0% for investment period less than 1 year, why not give the user a choice to use whichever lens he wants to look through; Abs or XIRR. Don’t you think it’s better that way?
@Neelesh can you get this checked.
Nope, using XIRR for less than 1 year is wrong so no point giving option.
I will get this checked and update here