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Mutual funds
Also called: Compound annual growth rate
CAGR (compound annual growth rate) is the steady yearly rate at which an amount would have had to grow to go from its starting value to its ending value. It describes a single lump sum, not a series of investments.
CAGR = (Ending value ÷ Starting value)^(1 ÷ Years) − 1
₹1 lakh that grew to ₹2 lakh over 6 years has a CAGR of 2^(1/6) − 1 ≈ 12.2% a year.
For a SIP, where money goes in on many dates, the matching measure is XIRR, not CAGR.
CAGR (compound annual growth rate) is the steady yearly rate at which an amount would have had to grow to go from its starting value to its ending value. It describes a single lump sum, not a series of investments.
CAGR = (Ending value ÷ Starting value)^(1 ÷ Years) − 1. ₹1 lakh that grew to ₹2 lakh over 6 years has a CAGR of 2^(1/6) − 1 ≈ 12.2% a year.
No. CAGR describes a fund's costs, structure or past record. Mutual fund investments are subject to market risks, and past performance does not indicate future returns.