What is XIRR in Mutual Funds and how is it different from CAGR?
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CAGR is the rate of return of the underlying investments, independent of your personal contributions or withdrawals. The CAGR over some period assumes money is deposited at the beginning of that period and no additional deposits or withdrawals occur.
XIRR is your personal rate of return, based on when make contributions or withdrawals. If you contribute money when the fund is down, you will end up with a higher XIRR than if you bought when the fund is up, all else equal.
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