Stock Portfolio Analyser

XIRR (Extended Internal Rate of Return) calculates true annualised return accounting for the exact timing and amount of every investment and withdrawal. Simple percentage return does not account for when money was invested. XIRR is used by all professional fund managers and gives a far more accurate picture of actual performance.

No single sector should exceed 25–30% of portfolio value. A balanced Indian portfolio covers Banking and Finance, Information Technology, FMCG, Healthcare and Pharma, Automobile, Infrastructure, and Consumer Discretionary. Overconcentration in any single sector creates undiversifiable risk — if IT corrects, a 50% IT portfolio drops hard.

Weighted average P/E = Sum of (each stock's portfolio weight × each stock's P/E multiple). Compare against Nifty 50 P/E (historically 18–22x for fair value, 25–30x expensive, 14–17x cheap). High portfolio P/E means growth expectations are already priced in with less margin of safety.

Rebalance when: a single sector exceeds 30% due to appreciation, one stock exceeds 10% of portfolio, target asset allocation drifts more than 5–7% from plan, or annually on a fixed schedule. Prefer rebalancing in a new financial year to minimise STCG tax. Never rebalance emotionally during market panic.

Research suggests 15–25 stocks provides near-optimal diversification for Indian retail investors. Below 10 stocks is too concentrated and individual stock risk dominates. Above 30 stocks typically leads to index-like returns while adding complexity. Focus on understanding each business rather than owning many stocks superficially.