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By:

Quaid Najmi

4 January 2025 at 3:26:24 pm

MVA protests for third day:

Mumbai: The Maharashtra Vikas Aghadi (MVA) allies continued their agitation for the third day in different parts of Maharashtra with an aggressive state Congress hitting the streets today to protest the detention of Leader of Opposition in Lok Sabha Rahul Gandhi, his sister Priyanka Gandhi-Vadra and other Congress leaders yesterday, here on Wednesday. State and city Youth Congress again carried out vociferous protests near Mantralaya raising slogans, carrying banners and placards slamming the...

MVA protests for third day:

Mumbai: The Maharashtra Vikas Aghadi (MVA) allies continued their agitation for the third day in different parts of Maharashtra with an aggressive state Congress hitting the streets today to protest the detention of Leader of Opposition in Lok Sabha Rahul Gandhi, his sister Priyanka Gandhi-Vadra and other Congress leaders yesterday, here on Wednesday. State and city Youth Congress again carried out vociferous protests near Mantralaya raising slogans, carrying banners and placards slamming the state and central Bharatiya Janata Party (BJP), and when some attempted to enter inside, they were prevented by a strong posse of Mumbai Police deployed there since Monday. As tensions appeared to escalate, the police clamped down by detaining top state and city Youth Congress leaders including President Harshwardhan Sapkal, Vijay Wadettiwar, Bhai Jagtap, Hussain Dalwai, and many others. Thousands of students carried out a fresh demonstration at Dadar west Shivaji Park to vent their ire at the police action on Cockroach Janta Party (CJP)’s agitation in New Delhi on Monday. Several MVA leaders and Maharashtra Navnirman Sena chief Raj Thackeray visited or expressed solidarity with the protesting youth, comprising many women. Opposition’s Voice The Congress leaders alleged that Rahul Gandhi was targeted by the BJP-led government to muzzle democratic dissent, suppress the Opposition voices inside and outside Parliament and trampling upon the peoples' Constitutional Rights to protest peacefully. Defying pouring rains in the city on Wednesday, Congress workers along with activists of MVA allies, staged a noisy demonstration in Chembur and another group attempted to storm the BJP office in south Mumbai, condemning the assault on students in New Delhi and the detention of the Gandhi siblings. Senior Congress leader Hussain Dalwai flayed the government for “misusing the police” to gag democratic rights and the protests were intended to defend the Constitution and democracy against the BJP’s policy of intolerance of dissent in any form. “This is gross injustice. We are not allowed to protest against the government failures as they are misusing the police. The PM is scared of taking the resignation of Dharmendra Pradhan as he could be the next. We want to highlight to the BJP to govern the country as per the Constitution,” Dalwai declared, interacting with the media at Nariman Point. As the BJP also threatened to launch counter-protests, the police cordoned off and deployed a precautionary security ring around Tilak Bhavan, the state Congress headquarters, as leaders from both sides exchanged political darts and looked aggressive enough for a confrontation. MVA ‘bandh’, ‘Tricolour’ march today The state is set for another two days of political turmoil as the MVA has announced a Maharashtra shutdown (‘bandh’) on Thursday followed by a non-partisan ‘Tricolour Peace March’ on Friday. MVA allies, Vanchit Bahujan Aghadi (VBA) President Prakash Ambedkar and Shiv Sena (UBT) leader Aaditya Thackeray, besides other leaders of the alliance, informed of the state and city level actions today. Ambedkar appealed to the masses and also the BJP youth to participate wholeheartedly in the bandh tomorrow and claimed that students’ bodies, parent-teachers associations, colleges, universities, other institutes of higher education, private coaching institutions, and other governmental departments could support the shutdown, as it has now become a national issue. Aaditya sought the peoples’ participation in the ‘Tricolour Peace March’ on the theme of “One Nation, One Emotion” planned on July 24 afternoon to Shivaji Park, in support of environmentalist Sonam Wangchuk, the Cockroach Janta Party, plus the youth and students protesting in New Delhi. Terming it as a national citizens’ movement rather than a political party, he called upon the people not to carry any party flags but unite under the National Tricolour to assert democratic rights and express resentment against the government’s high-handed policies. Meanwhile, Mumbai Police have already imposed prohibitory orders under Section 144 across the city from July 23-to- August 6, apprehending the possibility of law-and-order disturbances.

Absolute Returns v/s XIRR

When investors evaluate any investment, the first number they usually think of is the “profit”. What extra have we earned? Naturally, this feels exciting. But the important question is: does this number truly reflect how well your money has worked for you?


This is where investors must understand the difference between absolute returns and XIRR. This difference is important across asset classes - whether it is a stocks portfolio, mutual funds portfolio, insurance product, LIC plan, real estate, or any other investment product.


Absolute Returns

Absolute return is the simplest (hence, misleading) way of measuring profit. It only tells you how much your investment has grown compared to the amount invested.


For example, if you bought a property for ₹1 crore and its value became ₹2 crore, your absolute return is 100%. You invested ₹1 crore and made a profit of ₹1 crore.


But this number does not tell the full story. The more important question is: how much time did it take?


If the same property doubled in five years, it would be excellent. But if it doubled over ten years, the annual return is much lower. In fact, ₹1 crore becoming ₹2 crore over ten years roughly translates to around 7% annualised return. Suddenly, the same 100% absolute return does not look as impressive.


XIRR Importance

XIRR stands for Extended Internal Rate of Return. It measures the actual annualised return of your investment, especially when money is invested or withdrawn at different points of time.


In stocks, XIRR helps measure multiple buy and sell transactions. In mutual funds, it helps measure SIPs, lump sum investments, switches, and redemptions. In insurance and LIC plans, it helps understand the real return after considering premiums paid over the years and the maturity value. In real estate, it helps compare the final value with the purchase price, holding period, and multiple cash flows.


This happens very often in real life, across multiple asset classes - multiple entries and exits of money. In such cases, absolute return can become misleading because it ignores timing.


XIRR considers three important things: how much you invested, when you invested, and what the current value is. It gives a more realistic picture of how efficiently your money has grown.


Real Purpose

The real purpose is to beat inflation, grow net worth, create wealth, and achieve financial goals.


If inflation is around 6% to 7%, your investments should ideally generate returns above that. If we also consider lifestyle inflation, the required return may be even higher. Education, healthcare, housing, travel, and daily expenses are all becoming costlier over time.


Therefore, do not overestimate returns by looking only at absolute numbers. Absolute returns may make you feel good, but XIRR tells you the truth.


For your wealth creation journey, XIRR is one of the most important numbers to track. It tells you whether your money is truly working hard, whether your portfolio is beating inflation, and whether your financial plan is on the right track.


(The author is Chartered Accountant and CFA (USA). Financial advisor. Views personal. He could be reached on 9833133605)

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