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How to calculate your SIP returns

If we make SIPs, and especially if the SIPs are on irregular dates, it becomes difficult to ascertain how much returns have we earned on our investments.

One of the methods to calculate annualised returns of our SIPs is called the Weighted Average Method.

An example of the same is given below:


__________________________________________________________________________________ Investment     Amount    NAV    Units    Current    Gain/Loss   % gain/loss  No of  Wght Annualised
Date                                                      Value                                          days            Return
A                    B           C        D=B/C    E=D*Y    F=E-B       G=F/B*100  H=X-A I=B*H J=G/H*365
__________________________________________________________________________________
19/09/2012    5000    15.5611    321.314    5041.22    41.22         0.82%       72    360000      4.18%
11/10/2012    5000    15.6152    320.201    5023.76    23.76         0.48%       50    250000      3.47%
02/11/2012    7500    15.6378    479.607    7524.75    24.75         0.33%       28    210000      4.30%
16/11/2012    5000    15.6710    319.061    5005.87      5.87         0.12%       14    70000       3.06%
                   22500                 1440.183   22595.60    95.60        0.42%       40    890000      3.92%
 

Current date    X    30/11/2012
Current NAV    Y    15.6894

Weighted no. of days = Total I/Total B = 89000/22500 = 40
Weighted Avg. Annualised Return = 3.92%
 

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