CAGR — Compound Annual Growth Rate
Investing term
CAGR is the constant yearly rate at which an investment would have grown from its starting value to its ending value over a period.
It smooths out the ups and downs into one annualised figure, which makes it ideal for comparing investments. ₹1 lakh growing to ₹1.77 lakh in 5 years is a CAGR of about 12.15%.
More investing terms
SIPA SIP is a way of investing a fixed amount in a mutual fund at regular intervals — usually a set sum every month — instead of investing a lump sum.XIRRXIRR is the single annualised return that accounts for investments made on different dates — the right way to measure a SIP's actual return.NAVNAV is the per-unit price of a mutual fund — the fund's total assets minus its liabilities, divided by the number of units outstanding.Expense RatioThe expense ratio is the annual fee a mutual fund charges, expressed as a percentage of your invested amount, deducted from the fund before the NAV is calculated.ELSSELSS is a type of equity mutual fund that qualifies for a tax deduction under Section 80C, with the shortest lock-in of any 80C option — just 3 years.SWPAn SWP lets you withdraw a fixed amount from a mutual fund at regular intervals while the rest stays invested and keeps growing.