CAGR
Compound Annual Growth Rate
Investment PlanningThe mean annual growth rate of an investment over a specified period longer than one year, assuming profits are reinvested at the end of each year.
Formula
CAGR = [(Ending Value / Beginning Value)^(1/n) - 1] × 100
Why it matters
CAGR smooths out volatility to show the 'true' annual return. It's the standard way to compare investments over different time periods.
Indian example
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