XIRR
Market basicsThe annualised return on cash flows that went in at different times.
In plain terms
The only honest measure of a SIP. Your app’s absolute return is not comparable to an index’s annual return.
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Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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Money-weighted return
Market basicsAlso called: MWRR, Cash-flow-weighted return
The return an actual stream of cash flows earned, with each amount weighted by its size and by how long it was invested.
In plain terms
Your number rather than the fund’s, and it arrives as XIRR on a platform statement. It cannot be compared between two people, because it is partly a fact about when each of them had money.