31-12-2013, 10:36 AM
(31-12-2013, 10:23 AM)jovialger Wrote: Hi all
Like to check with you if I am doing the XIRR function correctly. I do not have a separate bank account to track available cash for stock investments, and just want to use XIRR to compute the returns from my stock portfolio (no idle cash).
Start of year 1 (1/1/xx): -(market value of portfolio)
Date: -(purchases)
Date: + Div received
Date: + sales proceeds
End of year 1 (31/12/xx): +(market value of portfolio) or A
--> Compute CAGR for year 1 using XIRR
Start of year 2:-(market value of portfolio or A)
repeat the process
Eng of year2: +(market value of portfolio or B)
--> Compute CAGR for year 2 using XIRR
---> compute another overall CAGR for whole investment period of 2 years.
Is the above method acceptable for my purpose?
Thanks for your advice.
Yes, it should give the multi-year CAGR. It will give a particular year XIRR, if the input is for that year.
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