You must know about CAGR!

Explore the significance of CAGR in Mutual Funds and its impact on investment growth.

Sources: investopedia

Delving into the Concept

CAGR, or Compound Annual Growth Rate, reflects the average annual return rate over a specific period.

Sources: investopedia

How to calculate CAGR?

Divide the final value of an investment by its initial value, raised to the power of 1/n, where n represents the number of years invested, and subtracting 1.

Sources: investopedia

Here’s an Example

Consider an investment growing from ₹10,000 to ₹20,000 over 5 years, yielding a CAGR of approximately 15%.

Sources: investopedia

Importance

CAGR helps investors assess the performance of mutual funds accurately, accounting for fluctuations and volatility.

Sources: investopedia