Weighted Average Returns Calculator

What is Weighted Average Return in SIP?

Weighted Average Return (WAR) in SIP means the average return on your investment, taking into account the differing amounts and various time periods over which each investment is held. Since every SIP installment is made at different times, the return on each installment differs, thus making WAR a more accurate indicator of overall returns.

What is Weighted Average Return Calculator?

A Weighted Average Return Calculator calculates the overall return of a portfolio by taking into account different asset weights and their individual returns.

How to find the Weighted Average Return in SIP?

In SIP, the Weighted total Return is the sum of all the returns obtained on your investments. This is computed by adding up the percentage and the time period of each investment. Since each SIP payment is invested at a different time, the profits on each payment are also different. So, WAR is the better way to figure out how to calculate the total gain.

How to Calculate Weighted Average Return?

The formula for Weighted Average Return is:

WAR= [(Investment 1 ×Return 1) + (Investment 2 ×Return 2) ......(Investment n ×Return n)]/ [Total Investment]

Example: Calculating WAR for a SIP

You put ₹10,000 into a mutual fund every month for three months. The return on that fund changes like this:

Using the formula: WAR = [(10,000 x 10) + (10,000 x 8) + (10,000 x 6)]/[10,000+10,000+10,000]

WAR = 8%

The Weighted Average Return in this case is 8%.

Why is it Important to use Weighted Average Return Calculator?

• It gives a more accurate picture of how well a SIP is doing.
• It describes the changes in market situations
• It helps you compare different funding choices.

How to Make Weighted Average Return Better?

• Invest through SIP when the market goes down and prices drop, letting you buy more units at a lower cost.
• Choose funds with a strong long-term track record
• Step-up SIP to get the best long-term yield.

Who Can Use a Weighted Average Return Calculator?

• Investors & Portfolio Managers
• Financial Analysts
• Traders
• Wealth & Fund Managers
• Students & Researchers

Benefits of Using a Weighted Average Return Calculator

• Accurate Portfolio Performance Evaluation
• Time-Saving & Convenient
• Helps in Investment Decision-Making
• Assists in Risk Management
• Enhances Financial Planning