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CAGR Calculator

Updated on April 14, 2024 , 18936 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. 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 8.2% 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 (16 Apr 24)	₹29.7208 ↑ 0.10 (0.33 %)
Net Assets (Cr)	₹1,763 on 29 Feb 24
Category	Equity - Sectoral
AMC	SBI Funds Management Private Limited
Rating	☆☆
Risk	High
Expense Ratio	2.52
Sharpe Ratio	2.85
Information Ratio	-0.88
Alpha Ratio	-6.95
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
31 Mar 19	₹10,000
31 Mar 20	₹7,245
31 Mar 21	₹10,059
31 Mar 22	₹12,594
31 Mar 23	₹14,369
31 Mar 24	₹26,864

SBI PSU Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹543,623.
Net Profit of ₹243,623 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 16 Apr 24

Duration	Returns
1 Month	10%
3 Month	17.5%
6 Month	46.7%
1 Year	94.5%
3 Year	41.5%
5 Year	23.2%
10 Year
15 Year
Since launch	8.2%

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
Richard D'souza	1 Aug 14	9.67 Yr.

Data below for SBI PSU Fund as on 29 Feb 24

Equity Sector Allocation

Sector	Value
Financial Services	36.97%
Utility	19.35%
Industrials	12.44%
Energy	12.3%
Basic Materials	12.24%

Asset Allocation

Asset Class	Value
Cash	6.7%
Equity	93.3%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
State Bank of India (Financial Services) Equity, Since 31 Jul 10 \| SBIN	10%	₹170 Cr	2,277,500
NTPC Ltd (Utilities) Equity, Since 31 Jul 10 \| 532555	8%	₹146 Cr	4,343,244 ↑ 1,500,000
Power Grid Corp Of India Ltd (Utilities) Equity, Since 31 Jul 10 \| 532898	7%	₹128 Cr	4,535,554 ↑ 1,200,000
Oil & Natural Gas Corp Ltd (Energy) Equity, Since 31 May 20 \| 500312	5%	₹91 Cr	3,455,000
Housing & Urban Development Corp Ltd (Financial Services) Equity, Since 30 Nov 22 \| 540530	5%	₹83 Cr	4,350,000
RITES Ltd Ordinary Shares (Industrials) Equity, Since 31 Oct 22 \| RITES	4%	₹73 Cr	930,000 ↑ 235,000
Indian Oil Corp Ltd (Energy) Equity, Since 31 Aug 15 \| IOC	4%	₹71 Cr	4,281,804 ↑ 3,000,000
Bharat Heavy Electricals Ltd (Industrials) Equity, Since 31 Jul 23 \| 500103	4%	₹68 Cr	3,000,000
NHPC Ltd (Utilities) Equity, Since 31 Jan 24 \| NHPC	4%	₹67 Cr	7,600,000 ↑ 4,100,000
Punjab National Bank (Financial Services) Equity, Since 31 Dec 19 \| 532461	4%	₹66 Cr	5,425,000

2. 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 (16 Apr 24)	₹168.65 ↑ 0.11 (0.07 %)
Net Assets (Cr)	₹4,932 on 29 Feb 24
Category	Equity - Sectoral
AMC	ICICI Prudential Asset Management Company Limited
Rating	☆☆☆
Risk	High
Expense Ratio	2.22
Sharpe Ratio	3.61
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
31 Mar 19	₹10,000
31 Mar 20	₹6,301
31 Mar 21	₹11,765
31 Mar 22	₹15,945
31 Mar 23	₹19,470
31 Mar 24	₹31,799

ICICI Prudential Infrastructure Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹584,107.
Net Profit of ₹284,107 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 16 Apr 24

Duration	Returns
1 Month	6.3%
3 Month	12.1%
6 Month	32.7%
1 Year	64%
3 Year	40.9%
5 Year	26.4%
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	6.83 Yr.
Sharmila D’mello	30 Jun 22	1.76 Yr.

Data below for ICICI Prudential Infrastructure Fund as on 29 Feb 24

Equity Sector Allocation

Sector	Value
Industrials	29.05%
Financial Services	17.86%
Basic Materials	16.1%
Utility	14.25%
Energy	8.84%
Communication Services	2.24%
Real Estate	2.05%
Consumer Cyclical	1.86%

Asset Allocation

Asset Class	Value
Cash	6.85%
Equity	92.26%
Debt	0.89%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
NTPC Ltd (Utilities) Equity, Since 29 Feb 16 \| 532555	7%	₹359 Cr	10,712,000 ↓ -600,000
Larsen & Toubro Ltd (Industrials) Equity, Since 30 Nov 09 \| LT	5%	₹264 Cr	760,393 ↑ 39,900
ICICI Bank Ltd (Financial Services) Equity, Since 31 Dec 16 \| ICICIBANK	5%	₹241 Cr	2,290,000 ↑ 100,000
HDFC Bank Ltd (Financial Services) Equity, Since 31 Jan 22 \| HDFCBANK	5%	₹239 Cr	1,699,500 ↑ 760,000
Kalpataru Projects International Ltd (Industrials) Equity, Since 30 Sep 06 \| KPIL	4%	₹178 Cr	1,844,988 ↓ -18,016
NCC Ltd (Industrials) Equity, Since 31 Aug 21 \| NCC	3%	₹170 Cr	6,900,000 ↓ -758,244
Grasim Industries Ltd (Basic Materials) Equity, Since 31 Aug 23 \| GRASIM	3%	₹162 Cr	739,601
Gujarat Gas Ltd (Utilities) Equity, Since 31 Jan 23 \| GUJGASLTD	3%	₹161 Cr	2,844,446
Cummins India Ltd (Industrials) Equity, Since 31 May 17 \| 500480	2%	₹114 Cr	415,782
Oil & Natural Gas Corp Ltd (Energy) Equity, Since 30 Jun 17 \| 500312	2%	₹113 Cr	4,257,800 ↓ -577,500

3. 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 1.5% 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 (16 Apr 24)	₹11.4362 ↑ 0.00 (0.01 %)
Net Assets (Cr)	₹142 on 29 Feb 24
Category	Debt - Credit Risk
AMC	BOI AXA Investment Mngrs Private Ltd
Rating	Not Rated
Risk	Moderate
Expense Ratio	1.55
Sharpe Ratio	-0.19
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	6.95%
Effective Maturity	9 Months
Modified Duration	7 Months 13 Days

Growth of 10,000 investment over the years.

Date	Value
31 Mar 19	₹10,000
31 Mar 20	₹5,727
31 Mar 21	₹3,111
31 Mar 22	₹7,763
31 Mar 23	₹8,062
31 Mar 24	₹8,614

BOI AXA Credit Risk Fund SIP Returns

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 16 Apr 24

Duration	Returns
1 Month	0.6%
3 Month	2.5%
6 Month	3.9%
1 Year	6.8%
3 Year	40.4%
5 Year	-2.8%
10 Year
15 Year
Since launch	1.5%

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	9.1 Yr.

Data below for BOI AXA Credit Risk Fund as on 29 Feb 24

Asset Allocation

Asset Class	Value
Cash	39.26%
Debt	60.45%
Other	0.3%

Debt Sector Allocation

Sector	Value
Corporate	55.99%
Cash Equivalent	26.79%
Government	16.92%

Credit Quality

Rating	Value
AA	76.43%
AAA	23.57%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Godrej Industries Limited Debentures \| -	10%	₹15 Cr	1,500,000
Steel Authority Of India Limited Debentures \| -	10%	₹14 Cr	1,400,000
Century Textiles And Industries Limited Debentures \| -	8%	₹12 Cr	1,200,000
TATA Motors Limited Debentures \| -	7%	₹10 Cr	1,000,000
Piramal Capital & Housing Finance Ltd Debentures \| -	7%	₹10 Cr	1,000,000
The Tata Power Company Limited Debentures \| -	7%	₹10 Cr	1,000,000
National Bank For Agriculture And Rural Development Debentures \| -	7%	₹10 Cr	1,000,000
Power Finance Corporation Limited Debentures \| -	4%	₹5 Cr	500,000
Corporate Debt Market Development Fund Investment Fund \| -	0%	₹0 Cr	414
Amanta Healthcare Limited Preference Shares \| -	0%	₹0 Cr	2,291,890 ↑ 2,291,890

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.