CAGR (Compound Annual Growth Rate)
The smoothed-out yearly growth rate of an investment.
CAGR tells you the single steady annual rate that would take your investment from its starting value to its ending value, as if it grew evenly each year. Real returns are bumpy; CAGR irons out the bumps so you can compare investments fairly.
Example
₹1 lakh growing to ₹2 lakh in 6 years is roughly a 12% CAGR.
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