What is XIRR, and why is it compared with my plan?

XIRR is the one annual rate that, applied to each amount you put in on the date you put it in, arrives at what those holdings are worth today. Unlike a simple gain, it accounts for when the money went in, so a lump sum three years ago and a SIP started last month are weighted as they actually were. Investment Performance compares it with the return your plan assumes while you are working, because that assumption drives your whole projection.

Why a simple gain is not enough

How Nivritee works it out

• From your ledger: each month’s net purchases, treated as falling mid-month, as money in.
• Pooled across every priced holding, in your plan’s currency — never an average of each holding’s rate, which would weigh a small position the same as a large one.
• Ending at what your priced holdings are worth at the last close.
• How this return was worked out, under the headline, shows your own figures: what was put in, into how many holdings, since when, and what it is worth.

Holdings with no market price are left out of the rate: they count at what you paid and contribute no return. Where no rate can be solved — nothing priced yet, for example — the page shows a dash, never 0%, because a computed zero and an uncomputable one would look the same.

Against your plan

Under the rate, a line gives the difference — for example +1.7% against the rate your plan projects with — with an arrow. The Return against your plan reading judges it: a point or more above the plan is Strong, within a point either way is Sound, up to three points behind is Mixed, and further behind is Needs work. Under a year, the figure is shown but not coloured; see why.