Investing
XIRR
Also known as: Extended Internal Rate of Return
The true annualised return of your investments when you put in money at different times, like a SIP.
When you invest via SIP, each installment stays invested for a different length of time. A simple average return can't handle that.
XIRR solves this by giving one annual percentage that accounts for the exact dates and amounts of every investment and withdrawal.
It is the number you should actually look at to judge your SIP returns, not the headline fund return.
For example
Your app might show your SIP grew from ₹1.2L invested to ₹1.5L. The XIRR turns that messy timeline into a single figure like 14% per year.