Can you educate me on how you get your numbers for your CAGR and IRR? I am just a bit curious.

Normally it makes sense to pay off your debts in the following order from highest interest to lowest interest

1. Credit Card/Personal Loan
2. Car Loan
3. Housing Loan

I am not familiar with how zakat works just now researching it sounds complicated but if you. If you have to continue paying the same zakat amount even if you pay off your housing loan doesn't sound worth it. If your effective return is 2.5-3.5% and your loan has a higher interest guess it would be better to pay off your loans.


Whether it is worth it to refinance you really need to work out the figures whether it is cheaper.

Just make sure you have 6 months of living expenses first before you pay off your loan as money in ASB is liquid money in your loan is only liquid if you have a Flexi loan.

This is just my opinion you either need to look at the actual numbers yourself or get someone to look for you to get a proper recommendation.

If there was a single lump sum investment two years ago the CAGR and the IRR should be the same.

Since it is different there must have been multiple inflows and outflows of cashflow.

Hence it would not be possible to calculate CAGR and you would need to calculate the money-weighted return which is equivalent to the IRR.

So what I am trying to figure out as the IRR and CAGR is not the same, how did he manage to calculate CAGR or if there was only 1 lump sum
investment why is CAGR and IRR not the same

If you also look at the Sharpe ratio

which is Sharpe Ratio = (Return - Risk Free Rate) / Standard Deviation

I would assume he is using the IRR to calculate the Sharpe Ratio as the number would roughly be correct if he used IRR and not CAGR. So I am wondering
where the CAGR came from.

The numbers from the Sharpe ratio are also inconsistent. I calculated for
a. portfolio 1 the Risk Free Rate = 2.1801
b. portfolio 2 the Risk Free Rate = 1.7716

The only way the two portfolios can have a different risk free rate is if the time periods are different in which case you can't compare both the portfolioos.
If the numbers don't tally I don't think it is possible to give a reasonable opinion till it is confirmed whether to use CAGR or IRR and
to confirm what is the standardized risk free rate base on the same time period to calcualte the relavant Sharpe and Sortino ratios..

For example if I used a risk free rate of 2%. Portfolio 1 would have a higher sharpe ratio (1.13) then portfolio 2 (1.09) but in the above example
portfolio 2 (1.12) has a higher sharpe ratio then portfolio 1 (1.11).

Not sure whether my understanding of the concepts or calculations are correct so please correct me if I am wrong.

I calculate using excel or a financial calculator. Need the base data to see how it is calculated.