Compound Annual Growth Rate(CAGR)

CAGR stands for Compound Annual Growth Rate

Compound Annual Growth Rate is a representation of the compounded growth of your mutual fund investments. It shows the fund’s average annual growth or decline over a specific period of time.

It is a financial metric that represents the average annual growth rate of an investment over a specified period of time, taking into account the effect of compounding. CAGR is often used to compare the performance of different investments over the same period, as it provides a more accurate picture of the true rate of return. CAGR can be calculated using a simple formula that takes into account the starting value, ending value, and the number of years in the investment period.

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