CAGR (Compound Annual Growth Rate) is the annual rate at which an investment would have grown, compounding every year, to go from its starting value to its ending value over a period of a year or more.
How is CAGR calculated?
CAGR = (Ending Value ÷ Beginning Value) ^ (1 ÷ Number of years) − 1
For example, ₹1,00,000 that grows to ₹1,61,051 over 5 years has a CAGR of 10% — even if the investment actually rose 15% in one year and fell 3% in another, CAGR smooths all of that into one steady annual rate.
How is CAGR different from XIRR?
CAGR only works for a single investment made at the start and held untouched until the end — one entry, one exit. It doesn't handle money added or withdrawn partway through, which is normal for a SIP or a fund you've topped up more than once. For that, Rupeezy uses XIRR instead — it accounts for each investment and redemption on the date it actually happened, not just a single start and end value.
Where can I see CAGR on Rupeezy?
Open a fund's own scheme page and look at the return shown above its NAV chart, next to Category Average and This Fund. Rupeezy labels it CAGR for the 1Y, 3Y, 5Y and 10Y periods — a return under a year isn't annualised, so Rupeezy calls that one Absolute instead. See How to view mutual fund investments on the NAV graph? for the rest of that chart.
Things to keep in mind
- CAGR hides the ups and downs along the way. A fund that grew steadily and one that spiked then crashed back can show the same CAGR for the same period.
- CAGR is past performance, not a promise of future returns.