Understanding CAGR: Compound Annual Growth Rate Explained Simply

In this video, we delve into the concept of CAGR (Compound Annual Growth Rate) and break it down into its simplest form. Whether you're a seasoned investor or just starting your financial journey, understanding CAGR is crucial for making informed decisions.

CAGR is a powerful metric that helps measure the average annual growth rate of an investment over a specific period, accounting for compounding effects. It provides a more accurate representation of the actual growth rate compared to simple averages.

In this easy-to-understand explanation, we take you through the step-by-step process of calculating CAGR using practical examples. You'll learn how to interpret the CAGR figure and why it is often considered a reliable measure for evaluating investment performance.

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Use of this information is at the user's own risk. The Company and its directors, associates and employees will not be liable for any loss or liability incurred to the user due to investments made or decisions taken based on the information provided herein. The investment discussed or views expressed herein may not be suitable for all investors. The users should rely on their own research and analysis and should consult their investment advisors to determine the merit, risks and suitability of recommendation. Past performance is not a guarantee for future performance or future results. Information herein is believed to be reliable, although its accuracy and completeness cannot be guaranteed. The images used may be copyright of the company or third party. As a condition to using the services, the user agrees to the terms of use of the website and the services.

DISCLOSURES UNDER SEBI (RESEARCH ANALYST) REGULATIONS, 2014:

Yadnya Academy Pvt. Ltd. (InvestYadnya) is registered with SEBI under SEBI (Research Analyst) Regulations, 2014 with registration no. INH000008349.
Disclosure with regard to ownership and material conflicts of interest
1. Neither Research Analyst nor the entity nor his associates or relatives have any financial interest in the subject Company;
2. Neither Research Analyst nor the entity nor its associates or relatives have actual / beneficial ownership of one per cent or more securities of the subject Company, at the end of the month immediately preceding the date of publication of the research report or date of public appearance;
3. Neither Research Analyst nor the entity nor its associates or his relatives have any other material conflict of interest at the time of publication of the research report or at the time of public appearance.
Disclosure with regard to receipt of Compensation
1. The Research Entity and its associates have not received compensation from the subject company in the past twelve months.
2. The subject company is not or was not a client during the twelve months preceding the date of recommendation.

[rohansurjan]

Amazing!
It was informative and need more of these.

[rajnikantdivecha]

Sir
Very informative video👌👍
Thanks🙏

[dr.bharatipatil]

Thanks a lot for explaining important term CAGR with formula....and giving us in deepth knowledge in most simple way....💐👌👍🙏

[shreyshah]

I have portfolio of scrips in which I keep on buying incremental shares of companies within the year and will continue this buying. My investment horizon is long term. So in this scenario whether CAGR is accurate measure, if yes, how to calculate CAGR and if not, which is the accurate indicator and how to calculate it.

[umadevi]

Pl explain the difference between xirr & cagr

[Rohit-Mehra]

If possible, Do cover every metric in such short videos... Tq

[naikomi]

I think every broker must show CAGR for individual portfolio.

[flamyboyant]

Please explain XIRR & Rolling Returns
Do comparison with CAGR

[coldstone]

What is difference between CAGR and compound interest?

[meghalvasa]

Insufficient info for clear understanding.

[tusharm]

If we slowly staggered stock or portfolio level we should see CAGR OR XIRR

[smileplease]

So this 19.66% was for one year na or for the 3 Please clear this doubt anyone.

[Pathaganrichway]

Yaar average return per year ko itna kumaakkey kyun bol a hai