Methodology — How Arthavi Works Under the Hood

How does Arthavi parse CAS statements?

Arthavi's CAS parser processes CAMS and KFintech Consolidated Account Statement PDFs through the following pipeline:

1. Client-side PDF decryption — The password-protected CAS is decrypted in the user's browser using their PAN. The password never leaves the browser.
2. Text extraction — PDF pages are converted to structured text using a JavaScript PDF parser.
3. Transaction identification — Regex and rule-based parsing identifies folio numbers, scheme names, AMC names, ISINs, transaction dates, transaction types (Purchase, SIP, Redemption, Switch In/Out, Dividend Reinvestment), units, and NAVs.
4. Data normalization — Scheme names are matched against AMFI's master database for standardized fund identification. NAVs are cross-verified with official AMFI feeds.
5. Portfolio construction — Extracted transactions are assembled into a structured portfolio model with per-fund and aggregate metrics.

The parser supports both current and legacy CAS formats from CAMS and KFintech, handling edge cases like partial redemptions, merger-triggered switches, and dividend reinvestment entries.

How does Arthavi calculate XIRR?

XIRR (Extended Internal Rate of Return) is the most accurate return metric for investments with irregular cash flows like SIPs.

Formula: Arthavi finds the rate r that satisfies:

Method: Newton-Raphson iterative convergence (same as Excel's XIRR function). Cash flows include:

• Every SIP installment (negative cash flow, on actual deduction date)
• Every lump sum purchase (negative cash flow)
• Every redemption (positive cash flow, on actual credit date)
• Switch-in/out treated as redemption + purchase pair
• Dividend reinvestment treated as a zero-net cash flow (dividend out + reinvestment in)
• Current portfolio value on today's date (final positive cash flow)

XIRR is calculated at three levels: per-fund, per-asset-class, and portfolio aggregate.

Where does Arthavi source market data?

How does Arthavi detect portfolio overlap?

Portfolio overlap analysis works by:

1. Fetching the top holdings of each mutual fund from AMFI's monthly portfolio disclosure data
2. Computing the Jaccard similarity index between any two funds' stock holdings: |A ∩ B| / |A ∪ B|
3. Flagging fund pairs with >50% overlap as "high overlap" and >30% as "moderate"
4. Displaying common stock names across fund pairs for manual review

Users can check overlap using our free mutual fund overlap tool or get automatic analysis by importing their CAS.

How does the AI assistant work?

The Ask AI feature operates on the user's parsed portfolio data (not the raw CAS). It:

• Receives portfolio holdings as structured data (fund names, allocations, sectors, overlap %)
• Answers contextual questions in plain English about the user's specific holdings
• Never has access to login credentials, PAN, or personal information
• Does not provide buy/sell recommendations or certified financial advice

How is net worth calculated?

Net worth = Sum of all mutual fund current valuations (units × latest NAV) + Sum of all stock holdings (shares × latest market price). All values update automatically using official market data feeds.