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Monday, July 1, 2013

What is CAGR? - Compounded Annual Growth Rate

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CAGR is compounded annual growth rate; It is one of the most common ways of calculating the rate of growth over a long period of time. CAGR is used widely in the mutual fund industry to calculate the yearly rate of growth of a scheme but not using the simple rate, but the compounded rate. Seen in another way, CAGR takes into account the time period of investment and the rate spread over that time period.

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