Fixing My XIRR Calculations

For the longest time I was debating whether to consider dividend reinvestment as a transaction in my XIRR calculations or not. Until now I never used dividend reinvestment in my XIRR. The reason was simple. If I did not sell and buy something (dividend reinvestment), then why should it be a transaction? But finally after some thought and a nudge from Value Research I decided to fix it. Why do I have dividend reinvestment? In the past I invested in liquid and ultra-short term mutual funds that used to offer dividends. This was a while ago around 2011 to 2015 … Continue reading “Fixing My XIRR Calculations”