I wanted to understand how we measure portfolio performance. How some of our investment decisions have been in the past, validate assumptions. I had asked Basantji earlier and he advised to post this on TED as this would help all. I use the XIRR function which is the IRR taking into account the various intervals of cash-flows and present valuing them and finding the IRR. I felt this is a good way to check if our investment decisions have been right. I can see a lot of work on this. Now at times we sell our portfolios, take loans to buy property. I wanted to understand if I take these two sets of cash-flows (Purchase/Sale), Re-investments in Real Estate, Repayment of Loans etc and assess all assets at current market value, we will know the investment effectiveness of our portfolio and other investments. Can seniors in TED please respond. Basantji - If this is not the right forum, please redirect it appropriately.

Nikrod ji - thanks for your note.  Can you also address if Real Estate investments  can also be clubbed with the sell out of portfolio ? Is there any issue in clubbing these two different asset class investments. Also are there any indicators of what is a good XIRR ? Does this change if we are measuring performance for 1 year, 5 years, 10 years and so on ?

That makes absolute sense ! Thanks !