The XIRR is the time weighted internal rate of return (extended internal rate of return), which computes the correct rate of return based on the time the cash-flows are expected/realized. The interest rate displayd is the interest rate with which the future discounted cash-flows equal the invested amount.
The XIRR presented in the Investors dashboard shows the expected net return of all investments, from the first investment to the expiration of the last contract. All Cashare fees, recovery measures, amortization payments as well as interest and late paiment interest are taken into account.
Since the current cash-flows are taken into account, the XIRR-value changes continuously. Especially while building a portfolio, the XIRR can vary significantly, until the portfolio generates stable cash-flows.
Have more questions? Submit a request
Article is closed for comments.