Calculate the Compounded Annual Growth Rate (CAGR) and average returns on your investments.
| Absolute Return | — |
| Total Profit/Loss | — |
| Investment Multiplied | — |
CAGR (Compound Annual Growth Rate) measures the rate at which an investment grows from its initial value to its final value over a period, assuming profits are reinvested. Formula: CAGR = (End Value / Begin Value)^(1/Years) - 1.
Q: What is a good CAGR for Indian stocks?
A: Nifty 50 has delivered approximately 12-14% CAGR over the last 20 years. Individual stocks can deliver higher but with more risk.
Q: Difference between CAGR and absolute return?
A: Absolute return is total % gain/loss. CAGR is the annualized rate. For comparing investments of different durations, CAGR is more meaningful.