IRR: Best way to calculate SIP returns | IRR vs XIRR vs CAGR | Money-Minded Mandeep | LLA
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- Äas pĆidĂĄn 25. 06. 2024
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In this video, we will learn how to calculate SIP returns accurately using the concept of IRR (Internal rate of return). We will walk you through the step-by-step process of calculating IRR and XIRR using MS Excel. We will also discuss the advantages and limitations of both methods and when to use them and what is the difference between XIRR and IRR?
Read the blog in English: labourlawadvisor.in/blog/best...
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Chapters:
0:00 My mutual fund returns
0:30 Most investors don't know this
2:24 Problem with SIP
3:47 IRR- Internal Rate of Return
5:09 XIRR case 1
7:50 XIRR case 2
8:51 XIRR vs IRR
11:20 XIRR case 3
12:42 XIRR case 4
13:51 XIRR without Excel
17:05 Answer this puzzle
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SIP Calculator: labourlawadvisor.in/calculato...
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#irr #xirr #sipreturns
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Which app is this??
Where can I access to app,.
I had opened demat account before watching your videos, can i still join that group ?
Sir Can you plz provide this Excel with Formula? Because it's not accepting.
Nice video mandeep bro. Enjoyed it.
Wah Wah Mandeep Bhai Zor Shor se janta jagruk karrahe ho!! Intrestingđ„đ
đđ
Arey ap bhi yhaan comment krre o
Are aap bhi kafi jagruk krte ho logo kođđđ
everywhere i go i see his face (#convey fan)
@@AjayKumar-dj7lp ungli kisko dikha rha hai be
Your channel is growing at 100% CAGR
Haha đ
@@LabourLawAdvisor sir plz make a video on how to become financial free starting investing or trading from 18 and also make video on how to gain capital for trading and also how to use credit card to trade without money
đđđ
XIRR kitna
Rt77.,
well done Maths !!! Respect for u bhai ... u can use NAV column for exact returns
The most genuine, humble, and informative channel on youtube. You guys are certainly going to go a long way. Wish you a lot of success keep going guys!
Kal hi manga aur aaj mil bhi gyaâ€ïž You guys are giving the most valuable education. Thanks for such a rare but most important education. Great fan of yours
One of the clear cut explanations for XIRR I have ever watchedđđđ
Honestly had no idea about this, saw xirr a couple of days ago against one of my Mf investment and was wondering what it was. Now everything is clear, thanks for the video great work đđđ
Better practical explanation than many Ph.D holder commerce teacher. I am a commerce student and did cap. Budgeting in 3rd year Financial management without knowing its practical use. You are great. Thanks a lot.
Only professionals like CA or CMA can teach hard core accounting not any Phd holder
One of the best videos I have come across, especially the part wherein you explained using google sheets / excel. Thank you !
Truly speaking these Valuable content deserves alot of appreciation â€â€
I can't even express how amazing the content stream is, while I was watching I was continuously thinking of you should've also been featured in the article highlighting the finance educators on CZcams platform. Truly your content is amazing. Huge fan. More power to you đ»
XIRR and IRR both are annualized, this is the pro tip from this video. I never came through this tip. And yes, thanks for explaining with best examples.
best video to understand how calculate SIP. great brother
If Mandeep ever started teaching in school or college's, I'm 100% sure that students will gonna win every event they participate and Score full marks in his papers.. Well done lad đ Hats off to the content you provide. You're amongst that very few gems left on CZcams â€â€â€
Thanks brother
I was a home tuition teacher for many people (including friends) before becoming a CZcamsr. All of them scored great đ
Didn't pursue a career there, though
@@LabourLawAdvisor I wish, I could have been one of your students to pursue career in your path. One shouldn't pursue Master's degree, they should master the skills like how you did.
Exactly.. There should be finance education in school as well
@@LabourLawAdvisor ig everyone saw your podcast. So everyone knows it
Very subtle, neat and crisp explanations! Kudos for your simplicity.
I already knew this as I also follow Rachana mam...... But thought let me check your feed too.... Man it was explained nicely.... Great job bro
awesome video.
.i claculated xirr of my LIC, its 7.5 % over 25 years.....not bad, beating inflation and more than the FDs đđ
Thanks Mandeep for keeping the request.. Please keep it up and bring something like this.đđđđđ Great effort bro....
Great this was so important for investors to understand XIRR. Never came across any channel which covered this...only some financial blogs with not clear explanation.
Thank you mandeep bhai!! Itna easy se kabhi nahi samajh aaya ye concept!! Even more with the examples which are really really helpful! Bhagwan tumhara bhala kare!
Thanks a lot Brother for this concepts, they look simple but in actually they are not đ
But after yours explanation they became the easiest thing in the worldđđ
Thanks Mandeep....I'm overwhelmed by the thought that my feedback was heard and you made video on this so quick.
More power and love to you. â„ïž
Best vedio ever on IRR .. pehele se bahoot saraa videos thaa U tube pe IRR ko lele .. But this was suprb... đđ
Mandeep Bhai, I want you to know that you are helping in creating wealth by controlling the blunders and common sense mistakes by creating awareness...
Thankyou and I am really proud of your research sharing attitude... thanks a ton brother
As expected!! XIRR ka aa hi gaya video!! Bahoot khoob! Very well explained sir ji đ
Groww app show karta he
I had no clue what XIRR was. I thought it was something that only accounting/ commerce background people can understand. Your explanation was so precise and simple, now this is a parameter I will surely watch out for in future. Thank you.
No use of seeing XIRR⊠as your actual return wt u realism is absolutely return
Mandeep you are now my personal investment trainer... love the way u explain...
Great video. The indepth knowledge of Finance and very elegant way to give a simple explanation of a complex topic is really helpful.
Earlier I used to calculate absolute returns now I know I need to calculate XIRR. Kuvera pe mene XIRR hi laga rakha hai. And Even I do irregular investments Maza agya video dkh k. đ„
This video was very well made bro. I have bookmarked it! I was back testing my own strategies but was making mistakes in the calculation of returns. This video should help!
U r a marvellous teacher!!!
U hv been keeping things simple, plz keep it up in future too.
Bohot sahi Mandeep bhai âŠliterally the way you make us understand the very critical concept in such a laymanâs way âŠmajaa aagyee
You guys are real life savers for middle class, Thank you and God bless
Very true
Very well presented and explained. Couldn't be and better than this. Thank you very much đđđ»ââïž
You guys are really doing very good job... Nahi to ye banks, RMs and insurance agents to saari investment 15-20-30 saal ke liye block karwa de wo bhi 5-6% returns ke liye... đ
Thank you for explaining this nicely, I always wondered how the xirr was calculated.
Glad it was helpful!
Same maine calculate kiya 4.75 a rha ..changes kyu a rahe
Video time 11:23
Everyone wants in mutual fund "21 din me paisa double" đ
Very well explained bro... This cleared my confusion which I had since years...And yes, I was among the ones who was investing in Mutual Funds since 2018 but never knew how to calculate returns. đ
Very informative and useful knowledge, thank you for presenting in most simple way.
Great đ Knowledge Sharing Sharma
I have seen few videos explaining XIRR. But honestly, this is the best. The way you have highlighted minute details about is commendable.
Glad it helped!
Thank you Mandeep. Your Videos educate with ease and in detail... One of the bestđ
All doubts cleared in one video.Good work.
Thank you so much. This is exactly what I was looking for. A mathematical way to evaluate a life insurance. But can you also tell what is an ideal IRR for such a plan, a benchmark number that we should compare it with?
Thanks. Bro for the video...
Ur channel deserves much more....subscribers.
Grand salute sir.
Thanks Mandeep for accepting the request and making the video. This is really helpful for calculating interval investments. Which we were not aware earlier.
Hey brother. Do you think an app. Where u can u put date and investment amount and gives xirr will be useful?
Good information
Bahut badia Bawa... Retirement tak videos dalte rehna tum... To meri retirement planning bhi tension free ho jaegi đ
đđđ
Mandeep trust me you're a awesome teacher, lots of love from mumbai and best wishes to you, Rishab and the whole LLA team.
No body, like no body explains it better than you đ
Thank you for this video. You saved me from purchasing an endowment LIC plan which had just 5% XIRR. I was excited looking at its Absolute interest. I have been investing in mutual fund and stocks never bothered to check about XIRR and IRR. It helped lot đ
Mera ch**ia kat chuka tha pehle ...thanks to lockdown and mandeep i got time to view his videos and be jagruk..thanks mandeep ji
I think 5% return is ok as FD returns are almost similar. For higher return, ulips are the only option in insurance plans. But that cost you risk
5% XIRR + Life Insurance + Tax Benefit .
â@@backpacker4342Chal bhaag faltu agent đ. Logo ko hutiya banake rakhe ho 50 saal se.
Ur return?
And people say maths is not used in real life.
Superb explanation. Answered all my queries point by pointđ
IRR gives the rate of return for periodic intervals. It doesn't matter what they are (days, months, years, decades) and hence it doesn't require dates. The result you get is the rate of return over the same period that your values were invested apart. That is, if the values you provided were periodic per month, the rate of return is also month over month. Since in the video, the dates he provided were a year apart each, the IRR given (5%) is year over year. The actual dates don't matter.
Yes, i thought so as well.. However, why does XIRR value not match the IRR even when the cash flows are at periodic intervals.. ?
U also đAwesome
Aap genuine information dethe ho sir
Loved it!!! Crisp and clear. Love your videos and shorts.
8% is the IRR when you calculate the IRR of 1000 investment for 6 months.
Amazing video man. Thank you so much brother learnt a lot.
Thanks!
I already know everything you explained about XIRR but didn't know about IRR because @CARachanaRanade said that both are the same, just MS Excell used different names for them. I saw so many videos about the share market and mutual funds everyone said that our investment would be compounded, so I had doubts about that because as per my knowledge of Mathematics that is not called compounding. You are the only person who said compounding will not happen.
Assume, you have invested in TATA motors 1 year ago, Assume share purchase price 250. Now after a year, assume it yesterday it closed at 450. And in today's market it increases by 1% only.... I.e. 454.5 now how much is 4.5 to your 250 purchase price is 1.8% .... Now tell me is it compounding or not?
@@mohitsomaiya thats not how the compounding works. Compounding means, lets assume you took 10,000 loan from bank with 10% compound interest. After 1st year interest will be 1000(total=11000), after 2nd year interest will be calculated to 1100 so final interest will be 1100. But in share market or MFs it is just number of shares or MF units you have & unit price matters. It is just difference between share price at the beginning & the end.
@@Yashwanth_KN
Dear, I know, I am a banker by profession. I just explained what they mean when they say compounding....
@@mohitsomaiya ok, means according to them compounding will happen on daily basis in share market right?
@@mohitsomaiya according to you, does compounding happen in share market?
Finally i saw a video where i really learnt the stuff...quality content brother..thanks
mandeep although i am not a finance student , but at this age i am able to understand concepts , you are a great teacher...
I used Xirr in excel
Just put ctrl+shift+# and if date will not come thn there is some problem in date format
Wowđđ very well explained to a lay man like me. Absolute amazing Mandeep bhai.
Exactly the maths solution I needed. Thanks Mandeep Bhaiya a lot
IRR is 100 %. Same as your channel growing đ€đ
It's 50%
@@parmarhitesh8703 it's 100perc
1000/- rupees in 6 month gives 50% return than IRR will be 100% (50%*2)
My all doubts are cleared after watching this video. thnx bro...
This guy is simply genius.!
"The Best Explanation from The Best Person" This video had all the answers to my questions. Though I read on Google yet Now I understood everything clearly.
Money Minded Mandeep is better than Most IITians I can Bet.đ
Editing on this channel have gone to next level. The ending was cool and the part where calculation was done too good editing.
Thank you bro :)
Mandeep can you make a video on Tax harvesting option on Kuvera?
I plan to â€ïž
Thank you đ
this video cleared a long standing doubt đ
Thanks to LLA and team; Now especially the youth is getting financially educated. God bless.
hi Mandeep! Just wanted to know the pros & cons on investing in mutual fund for a complete one year rather than going for monthly SIP.
Cons average return
Can you explain how compunding is affected by changing the stocks in our portfolio?
Best video...Aapne mausam badal diyađđ
What a detailed explanation!. Thank you for the video.
Great part is this is without any sponsorship or promotion and so simply explained in Hindi, I can share with my family members and educate them using your videos đ
Answer to question = 8%
Great. Thank you.
I was confused before to calculate my CAGR return in my stock investment in last 4 years. Now can I consider XIRR as Cagr return ?
Yes
Itna acha toh MBA ne bhi nhi sikhaya tha ... â€â€â€â€ Totally loved it!
Wow! Very informative video. I was unaware about this concept. Thanks!
Mandeep, thanks for the awesome material. I had a doubt. You said that there is no compounding in Mutual Funds. Isn't it the case (at least in Growth MFs) that the earnings from stock dividends/bond intrest payments and capital gains resulting from trading of the holdings are reinvested back into the MF making it kind of a compounding scheme?
Kind of compounding, yes
Exactly compounding, no
Still doesn't change the fact that equity investing has the power make enormous wealth.
Kind of compounding, yes
Exactly compounding, no
Still doesn't change the fact that equity investing has the power make enormous wealth.
Hey Mandeep, thanks for the great information and content as usual.
Just had a question.. You told us in the end that XIRR would evaluate to 47% if you kept investing with the same pace and that's why even though absolute returns was only 6.2%, the XIRR wouldn't be the same (obviously because you didn't invest for the entire year)
But my question is then if XIRR shows annual data, shouldn't XIRR show 8.3% on the first example since that was an annual overall (12 months)
Good observation.
No, 8.3% is absolute return. Not all money was invested for 1 year. IRR takes that into account and calculates a rate accordingly
@@LabourLawAdvisor Oh! So with that logic, suppose we invested a lumpsum amount of 12000 in the first month only and nothing else for the remaining months and in the 13th month, we've gotten 13000 back, then technically the IRR would be 8.3%. But in this case since each investment (of 1,000) is not for the entire year as you explained, it's calculating it to be whatever that percentage is (around 15%), is what you're saying right? Correct me if I'm wrong
@@ritzz5589 Yes. You are right now.
S
Brilliantly explained. Kudos
Mandeep bhai.....that's a great video.
Very informative and helpful.
Thanks a lot.
I will surely recommend this video to my friends and juniors.
Sir kaunse SIP m invest kare ?
????
Goal kya hai apka?
@@gopalsarda2158 - paisa double ho jaye
@@Rahul-or9hr đđđ haha đ Time lagta hai woh toh 25 din me double toh nahi hoga đ đ€Ł
Haan bhai 15 saal manke chalo....kaunsa SIP aacha hai???đ
@labour law advisor: In response to the question asked in the end of the video, XIRR= 126.52% and IRR=5000%. Is it correct ?
no the answer is 22%
@@anukoolthapa could you plz elaborate the calculation Y've done?
World class explanation. I have already attended the XIRR and IRR lecture from IIM Bangalore but this explanation is on another level. Thank you for your teaching with simplicity.
Here is the Answer for your Question posted at the end:
XIRR = 164.76%
IRR = 8%
Wow, I loved the video. First time, I understood what an IRR or XIRR is!
Now i can flaunt terms like XIRR IRR with my CA friends đđđ
Very Informative Video,
Sach kahu to chakshu khol diye sir aapne.
Bahut kaam ka video hai, aise aur bhi funds related videos chahiye
Super knowledge in simple language... Great channel đđ
Dil khush ho gya video dekhkr..truly intellectual content..this is the kind of finance advise that we need..by the way why is this chaannel named Labour Laws??
Fantastic Mandeep.....just loved the way you are explaining........excellent.....
Well explained , first time i have understood xirr... Thanx bro
Easy to understand and to the point explaination Mandeep Bhai :) Kudos to you :)
Best channel for financial education