Term

CAGR

The average yearly growth rate of an investment over a period.

Pending professional review. This content was drafted with Claude from official sources and has not yet been reviewed by an ArthaKara professional. Verify against the official sources before relying on it.
Simple meaningThe average yearly growth rate of an investment over a period.

Technical meaning

Compound annual growth rate = (ending value / beginning value)^(1/years) - 1.

Practical example

Rs 1 lakh growing to Rs 2 lakh in 6 years is a CAGR of about 12.2%.

Related terms

Official reference

General usage

Information published by ArthaKara Consulting Services is intended for general educational and informational purposes. It is based on the statutory provisions and official information referenced on the respective page as of its stated verification date. Laws, rules, notifications and regulatory interpretations may change. Readers should independently verify the applicable provisions and seek professional advice before taking action. ArthaKara is an independent professional information and consulting platform and is not a government website or government-endorsed portal.

Investment-related information is for educational purposes only. Past performance does not guarantee future returns. Readers should consider their financial objectives, risk tolerance and circumstances before making investment decisions.