Performance compared to an index using XIRR
 

Hi

I'm new to this group and groups in general, so please bear with me.
I'm a bit stuck trying to work out the performance of a portfolio of
investments performance. I'm using XIRR to show the performance of the
investments over time including adjustments for withdrawals and
increases which works fine. But I need to compare that performance with
and index to show how it is performing. I have the data for the index
but I can't work out how to adjust it to reflect the additional
investments and withdrawal.

e.g.

investment date Index value
-140000 17/11/04 2384.66
85000 18/1/05 2637.94
-55000 8/4/05 2754.37
-17639 1/8/05 2941.03
149082.81 12/12/06 3183.95

Any help with this would be very much appreciated.

Thank
John

Performance compared to an index using XIRR
 

You don't adjust an index for cash flows. The whole point of an index is it's
universal -- it's the same for everyone.

You simply calculate the rate of return over the same period of time, using the
starting and ending values. In your case, it's:

=RATE((DATE(6,12,12)-DATE(4,11,17))/365,0,-2384.66,3183.95)

=15.0%

--
Regards,
Fred


"johnjohn" wrote in message
ups.com...
Hi

I'm new to this group and groups in general, so please bear with me.
I'm a bit stuck trying to work out the performance of a portfolio of
investments performance. I'm using XIRR to show the performance of the
investments over time including adjustments for withdrawals and
increases which works fine. But I need to compare that performance with
and index to show how it is performing. I have the data for the index
but I can't work out how to adjust it to reflect the additional
investments and withdrawal.

e.g.

investment date Index value
-140000 17/11/04 2384.66
85000 18/1/05 2637.94
-55000 8/4/05 2754.37
-17639 1/8/05 2941.03
149082.81 12/12/06 3183.95

Any help with this would be very much appreciated.

Thank
John