1. Metrics covered
The performance metrics published by InvestorAi and covered by this methodology are listed below. Each is explained in the order shown.
Absolute Returns (in %), Annexure 19A item 2, shown for periods such as 1 Month, 3 Months, 6 Months and 12 Months.
CAGR, Annexure 19A item 3, shown for multi-year periods such as 2 Years.
Performance chart with NAV or price, Annexure 19A item 6, shown as the cumulative performance of the portfolio against its benchmark since inception.
All three metrics are derived from the Portfolio NAV. The NAV methodology is therefore explained first, because both the returns and the cumulative performance chart are built on it.
2. Portfolio NAV
Portfolio NAV is a normalised value used to track the performance of the model portfolio across time. It is the foundation for all the performance metrics that follow.
At the start date of the strategy, Portfolio NAV is set to 100. This represents a hypothetical investment of 100 allocated according to the portfolio weights. Each constituent is assigned capital based on its target weight, and the number of shares is calculated using the previous trading day closing price prior to the start date. Portfolio NAV on any trading day is equal to the total market value of all constituents based on their quantities. Quantities remain unchanged until the next rebalance.
2.1 Initial Portfolio NAV
Assume the portfolio is created with an initial NAV of 100 and the following weights and previous closing prices.
2.2 Daily Portfolio NAV
Portfolio NAV is updated on each trading day using the closing prices of constituents.
Portfolio NAV = Sum of (Quantity x Closing Price).
For example, if NAV is 100 on the previous day and 105 today, the daily change is 105 / 100 - 1 = 5%. If NAV then moves to 102 the next day, the daily change is 102 / 105 - 1 = -2.86%.
2.3 Treatment of rebalances
When the portfolio is rebalanced, the constituents or their weights may change. Portfolio NAV is not reset. The existing NAV is redistributed across the updated constituents according to the new weights. On a rebalance day, the previous day closing NAV is taken as the starting value, quantities for the updated weights are calculated using previous trading day closing prices, and the Portfolio NAV at the end of the day is calculated using current day closing prices. From the next trading day onward, NAV continues to be calculated using closing prices.
For example, with a previous NAV of 120 and new weights of A 60% and B 40%, the allocation is A = 72 and B = 48. Using previous closes of A 20 and B 10, quantities are A = 3 shares and B = 4 shares. Using rebalance-day closes of A 22 and B 14, the Portfolio NAV = 66 + 56 = 122, a daily return of 122 / 120 - 1 = 1.67%.
2.4 Benchmark NAV
Benchmark performance is calculated using the same NAV-normalisation approach. The benchmark is rebased to 100 at the strategy start date and the Benchmark NAV is calculated using the daily closing values of the benchmark index. Because this methodology is price based and excludes dividends (see Assumptions), the Price Return version of the benchmark index is used. The benchmark applicable to each strategy is named alongside that strategy wherever its performance is published.
3. Absolute Returns (in %)
Absolute Returns (in %), as defined in Annexure 19A item 2, are the returns generated in percentage terms for a particular time period. They are derived directly from the change in Portfolio NAV between the start and end of that period.
Absolute Return (in %) = (NAV at end / NAV at start) - 1.
For example, if NAV is 100 on 1 January and 120 on 1 February, the Absolute Return (in %) is 120 / 100 - 1 = 20% over that period.
3.1 Selecting the start and end dates of a period
The Absolute Return formula above applies in every case. The only thing that changes is how the start and end dates of the period are selected. Two conventions are used, depending on how the return is requested. Both produce a point-to-point return between two dates.
Case 1: Trailing return to a chosen date.
This convention applies when a return is requested for a period ending on a chosen date, which can be any day. The end date is that chosen date and the start date is the same calendar date a corresponding number of months or years earlier. For example, a 1 Month return ending on 15 June 2026 is measured from 15 May 2026 to 15 June 2026, and a 3 Month return ending on the same day is measured from 15 March 2026 to 15 June 2026. Where the start or end falls on a non-trading day, the nearest preceding trading day is used.
Case 2: Month-specific return.
This convention applies when a return relates to one specific calendar month. The period runs between month ends. The end date is the last trading day of the reference month and the start date is the last trading day of the month a corresponding number of months earlier. For example, the 1 Month return for April 2026 is measured from the last trading day of March 2026 to the last trading day of April 2026, the 3 Month return from the last trading day of January 2026, the 6 Month return from the last trading day of October 2025, and the 12 Month return from the last trading day of April 2025. Where a month end is not a trading day, the immediately preceding trading day is used. For a reference month of April 2026 (last trading day 30 April 2026) this gives start dates of 30 March 2026, 30 January 2026, 31 October 2025 and 30 April 2025 respectively.
In both cases every published return is shown together with its exact start and end dates.
4. CAGR
CAGR (Compound Annual Growth Rate), as defined in Annexure 19A item 3, is the compounded average annual growth rate over a specified period. It expresses the return over a multi-year period as an equivalent constant annual rate, and is also derived from the Portfolio NAV.
CAGR = (NAV at end / NAV at start) ^ (1 / number of years) - 1.
For a 2 Year CAGR the number of years is 2. For example, if Portfolio NAV is 100 at the start of the period and 169 at the end, the 2 Year CAGR = (169 / 100) ^ (1 / 2) - 1 = 30%.
The start and end dates for CAGR are selected using the same two conventions described in section 3.1. When the period ends on a chosen date, it runs from that date back to the same calendar date the relevant number of years earlier. When the return relates to a specific calendar month, it runs between month ends. For example, a 2 Year CAGR ending on 15 June 2026 runs from 15 June 2024 to 15 June 2026, while a 2 Year CAGR for the month of April 2026 runs from the last trading day of April 2024 to the last trading day of April 2026. The Benchmark CAGR is computed from the Benchmark NAV over the identical dates, using the same formula.
5. Cumulative performance chart
The cumulative performance chart, corresponding to Annexure 19A item 6 (performance chart with NAV or price), plots the Portfolio NAV and the Benchmark NAV over time, both rebased to 100 at the strategy start date. Each point on the chart is the NAV on that trading day, calculated as described in section 2. The chart therefore shows the growth of a hypothetical investment of 100 from inception to the as-on date, for both the portfolio and its benchmark.
The horizontal axis shows the date and the vertical axis shows the NAV value. The applicable date range, from the inception date to the as-on date, is stated alongside the chart.
6. Assumptions and disclosures
The following assumptions apply to all metrics computed under this methodology. They are disclosed in line with paragraph 4(iv) of SEBI Circular HO/38/12/11(1)2025-MIRSD-POD/I/73/2025 dated 30 October 2025 (assumptions made during performance calculation).
Returns are gross of costs.
Reported metrics are gross of brokerage, Securities Transaction Tax (STT), exchange transaction charges, GST, stamp duty and slippage. Actual post-cost returns realised by an investor will be lower than the model returns shown here.
Dividend and corporate action treatment.
Closing prices used in the NAV calculation are adjusted for stock splits, bonus issues and rights issues. Dividends paid by constituents are not separately added to the Portfolio NAV. Reported returns are therefore price based and do not include dividend income, and the benchmark used is the Price Return version of the index for consistency.
No uninvested cash.
Portfolio weights sum to 100% at all times. The model does not hold an uninvested cash component.
Rebalance execution assumption.
The model assumes that rebalance trades are executed at the previous trading day closing price. Actual client execution prices will differ from this assumption.
Day-1 return captures overnight movement.
On the strategy start date, Portfolio NAV is computed using the start-date closing prices against quantities derived from the previous trading day closing prices. The day-1 return therefore reflects the overnight movement from the previous close to the start-date close.
Benchmark.
The benchmark applicable to each strategy is named alongside that strategy wherever its performance is published and is computed using the same NAV-normalisation method described in section 2.4. Actual investor returns may differ from the model returns shown here.
7. Certification
The performance data has been certified by an independent Chartered Accountant who is a member of the Institute of Chartered Accountants of India (ICAI), as required under paragraph 4(vi) of the circular. The certificates are available to view using the buttons below.
8. Disclaimer
The performance data presented herein are not verified by Past Risk and Return Verification Agency (PaRRVA) or any other agency recognized by SEBI for this purpose. The performance data presented herein may not be comparable to performance data of any other IA/ RA. Computation of the performance may vary across the industry. Users are requested to apply their due diligence before making investment decisions on the basis of the given past performance data. Past performance is no guarantee of future results. Investment in securities is subject to market risk. Registration with SEBI or enlistment with IAASB or RAASB (as the case may be) is not a guarantee or assurance of future returns.