Where it is

ScreenPortfolioBasic

A portfolio page: the hero line under the value; the key figure Return, since you invested (Growth per year after a year); and, in Advanced, Money weighted return per year under the Compare card on the Returns tab.

Index in this video: Large Cap Multi Asset (the sample portfolio).

What it means

The hero divides the profit or loss by your net invested money: what went in less what came out. The key figure follows the portfolio's weekly unit value, which money in and out does not move, so it shows how the holdings did: a time weighted return, per year after a full year. Money weighted return per year is the XIRR: the yearly rate that brings every rupee in and out, and today's value, to zero; it counts when your money arrived. After a top up or a withdrawal the three part.

The formula

Hero: profit or loss over net invested. Key figure: the unit value's change, which flows do not move. XIRR: one yearly rate for all your flows and today's value.

As computed in the RupeeCase app
Hero return = (current value - net invested) / net invested, since you invested
Key figure = unit value now / unit value at the start - 1 (per year from a year)
Money weighted return per year = XIRR of money in, money out and today's value (after 30 days)

Worked example

Example only

  • Rs 1,00,000 in; it grows to Rs 1,20,000 (+20%)
  • You add Rs 1,00,000, then the whole falls 10% to Rs 1,98,000
  • Hero: -1% on Rs 2,00,000; time weighted: 1.2 x 0.9 - 1 = +8%

How to read it

  • Hero under the key figure: more of your money was in during the weaker weeks.
  • XIRR is per year, so a few months can show a large figure.
  • Same money in NIFTY 50 uses the hero's basis: your amounts on your dates.

Watch out

  • The hero's Invested is net of withdrawals, not the total you put in.
  • Money weighted return per year shows after 30 days, in Advanced only.
  • All three are before taxes on your gains.

Transcript

Tap Sound on for voice and music. These are the captions of the video, chapter by chapter.

  1. 0:00Where it is. The hero: profit or loss on your net invested money.
  2. 0:17What it means. In Advanced: money weighted return per year, the XIRR.
  3. 0:33Worked example. Worked example, example only: Rs 1,00,000 in; it grows to Rs 1,20,000 (+20%). You add Rs 1,00,000, then the whole falls 10% to Rs 1,98,000. Hero: -1% on Rs 2,00,000; time weighted: 1.2 x 0.9 - 1 = +8%.
  4. 0:41How to read it. Same money in NIFTY 50: your amounts, on your dates.
  5. 0:54Watch out. Watch out: The hero's Invested is net of withdrawals, not the total you put in. Money weighted return per year shows after 30 days, in Advanced only. All three are before taxes on your gains.

Terms in this tutorial

  • Time weighted returnA return that strips out the effect of money added or taken out, so it measures how the holdings themselves did.
  • Money weighted return per yearThe yearly return that takes account of when each rupee went in or came out.
  • InvestedThe money you put in, less the money you took out.
  • Same moneyWhat the benchmark would show if the same amounts had gone into it on the same dates as your money.

Learn it in depth