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CAGR Calculator

Updated on December 18, 2024 , 20182 views

What is CAGR?

CAGR refers to the mean annual growth of an investment over a specific time duration. It is assumed that the value of investment is compounded over the duration. Unlike Absolute Return, CAGR takes time value of money into account. As a result, it is able to reflect the true returns of an investment generated over a year.

CAGR Calculator

CAGR (Compound Annual Growth Rate)

20.11%

How To Use CAGR Calculator

Where can you use CAGR calculators CAGR is an easy to use tool to analyse your investment decisions. It finds application in the following scenarios:

You bought some specific units in Equity Funds this year and your fund value increased. With the help of CAGR calculator, you would be able to know the rate of return on your investment
You want to start Investing and have some specific goals. With the CAGR calculator, you will get to know at what rate you have to grow your money within the time frame
Consider you have invested in an equity fund whose 3,5, and 10-year returns are 25%, 15% and 10% respectively. You want to know the average rate at which your fund grew annually
To compare the CAGR of an investment with your expected rate and check for the suitability. Invest only if the CAGR is greater than or equal to your expected rate of return
CAGR of a Mutual Fund can be compared with a benchmark return

CAGR Formula

The CAGR can be calculated using the mathematical formula

CAGR = [ (Ending value/Beginning Value)^(1/N) ] -1

The above formula depends on three variables. Namely, the beginning value, ending value and Number of years (N)

When you input the above three variables, the CAGR calculator would give you the rate of Return on Investment.

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Limitations of CAGR

Even though CAGR is a useful concept, it has a lot of limitations. A lack of awareness of these limitations would lead to bad investment decisions. Some of the limitations are:

In calculations related to CAGR, it’s only the beginning and end values. It assumes that the growth is constant over the duration of time and fails to consider the Volatility aspect

It is suitable only for a lump sum investment. As in case of a SIP investment, the systematic investment at various intervals wouldn’t be considered as only the beginning value is considered while calculating the CAGR

CAGR does not account for the risk inherent in an investment. When it comes to equity investment, risk-adjusted returns are more important than CAGR. For these purposes, you need to consider better ratios like Sharpe Ratio

Top Funds with best 3 year CAGR

1. BOI AXA Credit Risk Fund

(Erstwhile BOI AXA Corporate Credit Spectrum Fund)

The Scheme’s investment objective is to generate capital appreciation over the long term by investing predominantly in corporate debt across the credit spectrum within the universe of investment grade rating. To achieve this objective, the Scheme will seek to make investments in rated, unrated instruments and structured obligations of public and private companies.

BOI AXA Credit Risk Fund is a Debt - Credit Risk fund was launched on 27 Feb 15. It is a fund with Moderate risk and has given a CAGR/Annualized return of 1.7% since its launch. Return for 2023 was 5.6% , 2022 was 143.1% and 2021 was 9.4% .

Below is the key information for BOI AXA Credit Risk Fund

BOI AXA Credit Risk Fund Growth
Launch Date	27 Feb 15
NAV (20 Dec 24)	₹11.7957 ↑ 0.00 (0.01 %)
Net Assets (Cr)	₹115 on 30 Nov 24
Category	Debt - Credit Risk
AMC	BOI AXA Investment Mngrs Private Ltd
Rating	Not Rated
Risk	Moderate
Expense Ratio	1.56
Sharpe Ratio	-0.71
Information Ratio	0
Alpha Ratio	0
Min Investment	5,000
Min SIP Investment	1,000
Exit Load	0-12 Months (4%),12-24 Months (3%),24-36 Months (2%),36 Months and above(NIL)
Yield to Maturity	7.01%
Effective Maturity	8 Months 19 Days
Modified Duration	7 Months 2 Days

Growth of 10,000 investment over the years.

Date	Value
30 Nov 19	₹10,000
30 Nov 20	₹5,547
30 Nov 21	₹6,069
30 Nov 22	₹14,728
30 Nov 23	₹15,534
30 Nov 24	₹16,495

BOI AXA Credit Risk Fund SIP Returns

Total investment amount is ₹180,000
expected amount after 3 Years is ₹212,284.
Net Profit of ₹32,284 Invest Now

Returns for BOI AXA Credit Risk Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 20 Dec 24

Duration	Returns
1 Month	0.4%
3 Month	1.5%
6 Month	2.5%
1 Year	6.1%
3 Year	39.7%
5 Year	10.5%
10 Year
15 Year
Since launch	1.7%

Historical performance (Yearly) on absolute basis

Year	Returns
2023	5.6%
2022	143.1%
2021	9.4%
2020	-44.4%
2019	-45.2%
2018	-0.3%
2017	9.3%
2016	11.2%
2015
2014

Fund Manager information for BOI AXA Credit Risk Fund

Name	Since	Tenure
Alok Singh	27 Feb 15	9.77 Yr.

Data below for BOI AXA Credit Risk Fund as on 30 Nov 24

Asset Allocation

Asset Class	Value
Cash	30.31%
Debt	69.31%
Other	0.38%

Debt Sector Allocation

Sector	Value
Corporate	62.8%
Cash Equivalent	30.31%
Government	6.51%

Credit Quality

Rating	Value
AA	85.58%
AAA	14.42%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Aditya Birla Real Estate Limited Debentures \| -	10%	₹12 Cr	1,200,000
7.99% Rashtriya Chemicals And Fertilizers Limited Debentures \| -	9%	₹10 Cr	1,000,000
Nirma Limited Debentures \| -	9%	₹10 Cr	1,000,000 ↑ 1,000,000
JSW Steel Limited Debentures \| -	9%	₹10 Cr	1,000,000
360 One Prime Limited Debentures \| -	9%	₹10 Cr	1,000,000
Gic Housing Finance Limited Debentures \| -	9%	₹10 Cr	1,000,000
Manappuram Finance Limited Debentures \| -	9%	₹10 Cr	1,000,000
Godrej Industries Limited Debentures \| -	9%	₹10 Cr	1,000,000
National Bank For Agriculture And Rural Development Debentures \| -	7%	₹7 Cr	750,000 ↑ 750,000
Corporate Debt Market Development Fund Investment Fund \| -	0%	₹0 Cr	414

2. SBI PSU Fund

The objective of the scheme would be to provide investors with opportunities for long-term growth in capital along with the liquidity of an open-ended scheme through an active management of investments in a diversified basket of equity stocks of domestic Public Sector Undertakings and in debt and money market instruments issued by PSUs AND others.

SBI PSU Fund is a Equity - Sectoral fund was launched on 7 Jul 10. It is a fund with High risk and has given a CAGR/Annualized return of 8.1% since its launch. Ranked 31 in Sectoral category. Return for 2023 was 54% , 2022 was 29% and 2021 was 32.4% .

Below is the key information for SBI PSU Fund

SBI PSU Fund Growth
Launch Date	7 Jul 10
NAV (20 Dec 24)	₹30.884 ↓ -0.44 (-1.40 %)
Net Assets (Cr)	₹4,686 on 30 Nov 24
Category	Equity - Sectoral
AMC	SBI Funds Management Private Limited
Rating	☆☆
Risk	High
Expense Ratio	2.3
Sharpe Ratio	1.63
Information Ratio	-0.36
Alpha Ratio	0.68
Min Investment	5,000
Min SIP Investment	500
Exit Load	0-1 Years (1%),1 Years and above(NIL)

Growth of 10,000 investment over the years.

Date	Value
30 Nov 19	₹10,000
30 Nov 20	₹8,382
30 Nov 21	₹11,639
30 Nov 22	₹15,358
30 Nov 23	₹20,094
30 Nov 24	₹30,427

SBI PSU Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹556,833.
Net Profit of ₹256,833 Invest Now

Returns for SBI PSU Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 20 Dec 24

Duration	Returns
1 Month	0.7%
3 Month	-4.7%
6 Month	-6%
1 Year	35%
3 Year	37.1%
5 Year	24.5%
10 Year
15 Year
Since launch	8.1%

Historical performance (Yearly) on absolute basis

Year	Returns
2023	54%
2022	29%
2021	32.4%
2020	-10%
2019	6%
2018	-23.8%
2017	21.9%
2016	16.2%
2015	-11.1%
2014	41.5%

Fund Manager information for SBI PSU Fund

Name	Since	Tenure
Rohit Shimpi	1 Jun 24	0.5 Yr.

Data below for SBI PSU Fund as on 30 Nov 24

Equity Sector Allocation

Sector	Value
Financial Services	35.74%
Utility	23.41%
Energy	16.47%
Industrials	11.12%
Basic Materials	7.15%

Asset Allocation

Asset Class	Value
Cash	6.1%
Equity	93.9%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
State Bank of India (Financial Services) Equity, Since 31 Jul 10 \| SBIN	15%	₹694 Cr	8,277,500
Power Grid Corp Of India Ltd (Utilities) Equity, Since 31 Jul 10 \| POWERGRID	9%	₹415 Cr	12,585,554
GAIL (India) Ltd (Utilities) Equity, Since 31 May 24 \| GAIL	9%	₹414 Cr	20,750,000 ↑ 2,400,000
Bharat Electronics Ltd (Industrials) Equity, Since 30 Jun 24 \| BEL	8%	₹369 Cr	11,975,000
Bharat Petroleum Corp Ltd (Energy) Equity, Since 31 Aug 24 \| BPCL	6%	₹260 Cr	8,900,000
NMDC Ltd (Basic Materials) Equity, Since 31 Oct 23 \| NMDC	5%	₹214 Cr	9,300,000
NTPC Ltd (Utilities) Equity, Since 31 Jul 10 \| NTPC	4%	₹198 Cr	5,443,244
Bank of Baroda (Financial Services) Equity, Since 31 Aug 24 \| BANKBARODA	4%	₹192 Cr	7,800,000
General Insurance Corp of India (Financial Services) Equity, Since 31 May 24 \| 540755	3%	₹144 Cr	3,600,000
Petronet LNG Ltd (Energy) Equity, Since 30 Jun 24 \| PETRONET	3%	₹137 Cr	4,100,000

3. ICICI Prudential Infrastructure Fund

To generate capital appreciation and income distribution to unit holders by investing predominantly in equity/equity related securities of the companies belonging to the infrastructure development and balance in debt securities and money market instruments.

ICICI Prudential Infrastructure Fund is a Equity - Sectoral fund was launched on 31 Aug 05. It is a fund with High risk and has given a CAGR/Annualized return of 16.4% since its launch. Ranked 27 in Sectoral category. Return for 2023 was 44.6% , 2022 was 28.8% and 2021 was 50.1% .

Below is the key information for ICICI Prudential Infrastructure Fund

ICICI Prudential Infrastructure Fund Growth
Launch Date	31 Aug 05
NAV (20 Dec 24)	₹186.07 ↓ -3.49 (-1.84 %)
Net Assets (Cr)	₹6,990 on 30 Nov 24
Category	Equity - Sectoral
AMC	ICICI Prudential Asset Management Company Limited
Rating	☆☆☆
Risk	High
Expense Ratio	2.22
Sharpe Ratio	2.1
Information Ratio	0
Alpha Ratio	0
Min Investment	5,000
Min SIP Investment	100
Exit Load	0-1 Years (1%),1 Years and above(NIL)

Growth of 10,000 investment over the years.

Date	Value
30 Nov 19	₹10,000
30 Nov 20	₹9,351
30 Nov 21	₹15,464
30 Nov 22	₹20,034
30 Nov 23	₹26,508
30 Nov 24	₹37,571

ICICI Prudential Infrastructure Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹642,208.
Net Profit of ₹342,208 Invest Now

Returns for ICICI Prudential Infrastructure Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 20 Dec 24

Duration	Returns
1 Month	1.7%
3 Month	-6.4%
6 Month	-0.9%
1 Year	33.5%
3 Year	35.5%
5 Year	30.5%
10 Year
15 Year
Since launch	16.4%

Historical performance (Yearly) on absolute basis

Year	Returns
2023	44.6%
2022	28.8%
2021	50.1%
2020	3.6%
2019	2.6%
2018	-14%
2017	40.8%
2016	2%
2015	-3.4%
2014	56.2%

Fund Manager information for ICICI Prudential Infrastructure Fund

Name	Since	Tenure
Ihab Dalwai	3 Jun 17	7.5 Yr.
Sharmila D’mello	30 Jun 22	2.42 Yr.

Data below for ICICI Prudential Infrastructure Fund as on 30 Nov 24

Equity Sector Allocation

Sector	Value
Industrials	36.67%
Basic Materials	19.58%
Financial Services	17.95%
Utility	10.37%
Energy	7.21%
Consumer Cyclical	1.19%
Real Estate	0.87%
Communication Services	0.74%

Asset Allocation

Asset Class	Value
Cash	4.73%
Equity	94.58%
Debt	0.69%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Larsen & Toubro Ltd (Industrials) Equity, Since 30 Nov 09 \| LT	9%	₹634 Cr	1,749,683 ↑ 550,000
NTPC Ltd (Utilities) Equity, Since 29 Feb 16 \| 532555	4%	₹270 Cr	6,615,698
ICICI Bank Ltd (Financial Services) Equity, Since 31 Dec 16 \| ICICIBANK	4%	₹257 Cr	1,990,000
JM Financial Ltd (Financial Services) Equity, Since 31 Oct 21 \| JMFINANCIL	4%	₹244 Cr	17,363,241
Shree Cement Ltd (Basic Materials) Equity, Since 30 Apr 24 \| 500387	4%	₹240 Cr	95,657 ↑ 28,035
HDFC Bank Ltd (Financial Services) Equity, Since 31 Jan 22 \| HDFCBANK	3%	₹226 Cr	1,300,000 ↓ -90,000
NCC Ltd (Industrials) Equity, Since 31 Aug 21 \| NCC	3%	₹210 Cr	7,012,665 ↑ 912,508
Kalpataru Projects International Ltd (Industrials) Equity, Since 30 Sep 06 \| KPIL	3%	₹204 Cr	1,602,254 ↓ -100,658
Reliance Industries Ltd (Energy) Equity, Since 31 Jul 23 \| RELIANCE	3%	₹201 Cr	1,509,486 ↑ 1,000,000
Adani Ports & Special Economic Zone Ltd (Industrials) Equity, Since 31 May 24 \| ADANIPORTS	3%	₹191 Cr	1,387,644 ↑ 400,000

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.