Explaining Sqrrl Investment Details Terminology


Certain complications surround in the minds of users concerning what a particular term on their Sqrrl Investment Details Page and Dashboard constitutes for. For those cases, we’ve prepared this handy guide that will help you out!

Have a look:


Account Balance

This is the current value of your investments, based on the latest available Net Asset Value (NAV) of the mutual fund schemes you are invested in.


Amount Invested

This is the net amount you have currently invested (i.e., principal value) after subtracting any withdrawals you may have made.

Important information if you switched from Regular Mutual Funds to Direct Mutual Funds:

The amount invested will be the switched amount, rather than the actual amount invested till the time of switch. Think of it as a sort of account reset, where the investment in direct plans at the time of switch becomes the base amount.


Gains

This is the difference between the current value and the amount invested. This can also be referred to as “Unrealised Gains” as these gains are only notional till you actually withdraw the full amount.


Returns/Net Gains in Percentage

There are two ways this percentage is calculated.

Absolute return

Shown for SIP, Axe Tax or long term (>1 year) goals, where the underlying funds are mostly Equity funds. This is simply the gain as a percentage of your investment. This should not be considered the annual rate of return, but only for the time the investment has been.

Example -Suppose an investment of Rs 1,000 was made five years ago and it has grown to Rs 1,300 today, then the absolute gain would be Rs 300, i.e., a 30 per cent growth. This 30 per cent return is absolute return.

Annualised Rate of Return (or XIRR)

Shown for Sqrrl Away or short term (< 1 year) goals, where the underlying funds are mostly Debt funds. This is the gain percentage computed as the annual rate of return on your investment. You can compare this with familiar interest rates like bank or deposits.

Annualized returns are calculated based on adding first year returns to the principal amount for calculation of next years returns and so on and so forth.


 

Written by

Vedant Kaushik