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CAGR Calculator

Updated on September 20, 2021 , 9161 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. ICICI Prudential Technology Fund

To generate long-term capital appreciation for you from a portfolio made up predominantly of equity and equity-related securities of technology intensive companies.

ICICI Prudential Technology Fund is a Equity - Sectoral fund was launched on 3 Mar 00. It is a fund with High risk and has given a CAGR/Annualized return of 13.8% since its launch. Ranked 37 in Sectoral category. Return for 2020 was 70.6% , 2019 was 2.3% and 2018 was 19.1% .

Below is the key information for ICICI Prudential Technology Fund

ICICI Prudential Technology Fund Growth
Launch Date	3 Mar 00
NAV (22 Sep 21)	₹161.75 ↑ 1.98 (1.24 %)
Net Assets (Cr)	₹5,037 on 31 Aug 21
Category	Equity - Sectoral
AMC	ICICI Prudential Asset Management Company Limited
Rating	☆☆
Risk	High
Expense Ratio	2.53
Sharpe Ratio	5.19
Information Ratio	0.39
Alpha Ratio	27.7
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 Aug 16	₹10,000
31 Aug 17	₹10,287
31 Aug 18	₹15,588
31 Aug 19	₹15,401
31 Aug 20	₹18,448
31 Aug 21	₹38,991

ICICI Prudential Technology Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹689,048.
Net Profit of ₹389,048 Invest Now

Returns for ICICI Prudential Technology Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Sep 21

Duration	Returns
1 Month	9.4%
3 Month	28.3%
6 Month	48.2%
1 Year	101.5%
3 Year	38.5%
5 Year	33.1%
10 Year
15 Year
Since launch	13.8%

Historical performance (Yearly) on absolute basis

Year	Returns
2020	70.6%
2019	2.3%
2018	19.1%
2017	19.8%
2016	-4%
2015	3.9%
2014	26.3%
2013	62.6%
2012	17.1%
2011	-18.9%

Fund Manager information for ICICI Prudential Technology Fund

Name	Since	Tenure
Sankaran Naren	14 Jul 17	4.05 Yr.
Priyanka Khandelwal	8 Jul 20	1.07 Yr.
Vaibhav Dusad	2 May 20	1.25 Yr.

Data below for ICICI Prudential Technology Fund as on 31 Aug 21

Equity Sector Allocation

Sector	Value
Technology	76.11%
Communication Services	9.58%
Industrials	7.65%
Consumer Cyclical	1.18%
Consumer Defensive	1.04%

Asset Allocation

Asset Class	Value
Cash	4.44%
Equity	95.56%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Infosys Ltd (Technology) Equity, Since 30 Apr 08 \| INFY	20%	₹829 Cr	5,147,218 ↓ -223,000
Tech Mahindra Ltd (Technology) Equity, Since 31 Oct 16 \| 532755	9%	₹359 Cr	2,968,698 ↑ 472,591
HCL Technologies Ltd Shs Dematerialised (Technology) Equity, Since 30 Sep 20 \| HCLTECH	8%	₹324 Cr	3,165,807 ↑ 360,000
Tata Consultancy Services Ltd (Technology) Equity, Since 30 Sep 19 \| TCS	7%	₹271 Cr	854,884 ↑ 129,699
Persistent Systems Ltd (Technology) Equity, Since 31 May 20 \| PERSISTENT	5%	₹205 Cr	652,793 ↑ 154,488
Cyient Ltd (Industrials) Equity, Since 30 Jun 18 \| CYIENT	3%	₹126 Cr	1,278,458 ↑ 368,478
Cognizant Technology Solutions Corp A (Technology) Equity, Since 31 Jul 21 \| CTSH	3%	₹115 Cr	210,000 ↑ 210,000
Indian Railway Catering And Tourism Corp Ltd (Industrials) Equity, Since 31 Dec 20 \| 542830	3%	₹114 Cr	490,609 ↓ -23,000
Wipro Ltd (Technology) Equity, Since 30 Sep 19 \| 507685	3%	₹107 Cr	1,821,450
Coforge Ltd Shs Dematerialised (Technology) Equity, Since 31 Jul 20 \| 532541	2%	₹98 Cr	192,594 ↓ -53,375

2. Aditya Birla Sun Life Digital India Fund

(Erstwhile Aditya Birla Sun Life New Millennium Fund)

A multi-sector open-ended growth scheme with the objective of long term growth of capital, through a portfolio with a target allocation of 100% equity, focusing on investing in technology and technology dependent companies, hardware, peripherals and components, software, telecom, media, internet and e-commerce and other technology enabled companies. The secondary objective is income generation and distribution of dividend.

Aditya Birla Sun Life Digital India Fund is a Equity - Sectoral fund was launched on 15 Jan 00. It is a fund with High risk and has given a CAGR/Annualized return of 12.9% since its launch. Ranked 33 in Sectoral category. Return for 2020 was 59% , 2019 was 9.6% and 2018 was 15.6% .

Below is the key information for Aditya Birla Sun Life Digital India Fund

Aditya Birla Sun Life Digital India Fund Growth
Launch Date	15 Jan 00
NAV (22 Sep 21)	₹138.27 ↑ 2.12 (1.56 %)
Net Assets (Cr)	₹2,288 on 31 Aug 21
Category	Equity - Sectoral
AMC	Birla Sun Life Asset Management Co Ltd
Rating	☆☆
Risk	High
Expense Ratio	2.56
Sharpe Ratio	6.14
Information Ratio	0.87
Alpha Ratio	30.67
Min Investment	1,000
Min SIP Investment	1,000
Exit Load	0-365 Days (1%),365 Days and above(NIL)

Growth of 10,000 investment over the years.

Date	Value
31 Aug 16	₹10,000
31 Aug 17	₹10,447
31 Aug 18	₹15,844
31 Aug 19	₹15,374
31 Aug 20	₹18,971
31 Aug 21	₹37,429

Aditya Birla Sun Life Digital India Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹657,502.
Net Profit of ₹357,502 Invest Now

Returns for Aditya Birla Sun Life Digital India Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Sep 21

Duration	Returns
1 Month	8.8%
3 Month	23.8%
6 Month	42.1%
1 Year	94.5%
3 Year	36.8%
5 Year	31.8%
10 Year
15 Year
Since launch	12.9%

Historical performance (Yearly) on absolute basis

Year	Returns
2020	59%
2019	9.6%
2018	15.6%
2017	22.4%
2016	-3.5%
2015	11.2%
2014	21.1%
2013	50.2%
2012	3.7%
2011	-21.8%

Fund Manager information for Aditya Birla Sun Life Digital India Fund

Name	Since	Tenure
Kunal Sangoi	15 Jan 14	7.55 Yr.

Data below for Aditya Birla Sun Life Digital India Fund as on 31 Aug 21

Equity Sector Allocation

Sector	Value
Technology	70.66%
Communication Services	14.02%
Industrials	7.59%
Consumer Cyclical	0.88%

Asset Allocation

Asset Class	Value
Cash	6.85%
Equity	93.15%
Other	0%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Infosys Ltd (Technology) Equity, Since 30 Apr 05 \| INFY	18%	₹360 Cr	2,235,259
HCL Technologies Ltd Shs Dematerialised (Technology) Equity, Since 31 Dec 10 \| HCLTECH	10%	₹189 Cr	1,843,931 ↑ 700,000
Tata Consultancy Services Ltd (Technology) Equity, Since 30 Apr 05 \| TCS	9%	₹180 Cr	569,487 ↑ 70,000
Tech Mahindra Ltd (Technology) Equity, Since 31 May 13 \| 532755	9%	₹178 Cr	1,469,943 ↑ 50,000
Cyient Ltd (Industrials) Equity, Since 31 May 14 \| CYIENT	5%	₹89 Cr	901,179 ↑ 18,570
Bharti Airtel Ltd (Communication Services) Equity, Since 31 Aug 19 \| BHARTIARTL	4%	₹86 Cr	1,526,670 ↑ 459,733
Persistent Systems Ltd (Technology) Equity, Since 31 Jul 13 \| PERSISTENT	4%	₹73 Cr	231,326
Just Dial Ltd (Communication Services) Equity, Since 30 Sep 19 \| 535648	3%	₹64 Cr	658,953
Firstsource Solutions Ltd (Technology) Equity, Since 31 Aug 20 \| 532809	3%	₹51 Cr	2,605,109
Wipro Ltd (Technology) Equity, Since 31 Jan 21 \| 507685	2%	₹46 Cr	789,307

3. TATA Digital India Fund

The investment objective of the scheme is to seek long term capital appreciation by investing atleast 80% of its net assets in equity/equity related instruments of the companies in Information Technology Sector in India.However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved.The Scheme does not assure or guarantee any returns.

TATA Digital India Fund is a Equity - Sectoral fund was launched on 28 Dec 15. It is a fund with High risk and has given a CAGR/Annualized return of 26.3% since its launch. Return for 2020 was 54.8% , 2019 was 7.5% and 2018 was 24.9% .

Below is the key information for TATA Digital India Fund

TATA Digital India Fund Growth
Launch Date	28 Dec 15
NAV (22 Sep 21)	₹38.102 ↑ 0.52 (1.38 %)
Net Assets (Cr)	₹2,768 on 31 Aug 21
Category	Equity - Sectoral
AMC	Tata Asset Management Limited
Rating	Not Rated
Risk	High
Expense Ratio	1.73
Sharpe Ratio	4.67
Information Ratio	-0.16
Alpha Ratio	15.6
Min Investment	5,000
Min SIP Investment	500
Exit Load	0-3 Months (0.25%),3 Months and above(NIL)

Growth of 10,000 investment over the years.

Date	Value
31 Aug 16	₹10,000
31 Aug 17	₹9,924
31 Aug 18	₹16,358
31 Aug 19	₹16,028
31 Aug 20	₹17,912
31 Aug 21	₹37,162

TATA Digital India Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹673,113.
Net Profit of ₹373,113 Invest Now

Returns for TATA Digital India Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Sep 21

Duration	Returns
1 Month	10.7%
3 Month	28.5%
6 Month	46.4%
1 Year	100.1%
3 Year	35.5%
5 Year	32.2%
10 Year
15 Year
Since launch	26.3%

Historical performance (Yearly) on absolute basis

Year	Returns
2020	54.8%
2019	7.5%
2018	24.9%
2017	19.6%
2016	-6%
2015
2014
2013
2012
2011

Fund Manager information for TATA Digital India Fund

Name	Since	Tenure
Meeta Shetty	20 Apr 20	1.28 Yr.
Venkat Samala	26 Nov 20	0.68 Yr.

Data below for TATA Digital India Fund as on 31 Aug 21

Equity Sector Allocation

Sector	Value
Technology	75.73%
Communication Services	8.13%
Industrials	7.41%
Consumer Cyclical	2.39%

Asset Allocation

Asset Class	Value
Cash	6.33%
Equity	93.67%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Infosys Ltd (Technology) Equity, Since 31 Jan 16 \| INFY	17%	₹371 Cr	2,305,000 ↑ 75,000
Tata Consultancy Services Ltd (Technology) Equity, Since 31 Jan 16 \| TCS	12%	₹267 Cr	843,126 ↑ 30,000
HCL Technologies Ltd Shs Dematerialised (Technology) Equity, Since 31 Jan 16 \| HCLTECH	10%	₹212 Cr	2,064,713 ↑ 740,972
Tech Mahindra Ltd (Technology) Equity, Since 30 Apr 16 \| 532755	7%	₹154 Cr	1,275,000
Persistent Systems Ltd (Technology) Equity, Since 31 Jan 16 \| PERSISTENT	4%	₹96 Cr	303,963 ↓ -71,400
Indian Railway Catering And Tourism Corp Ltd (Industrials) Equity, Since 31 Dec 20 \| 542830	4%	₹79 Cr	338,816 ↑ 135,000
Larsen & Toubro Infotech Ltd (Technology) Equity, Since 28 Feb 21 \| 540005	4%	₹77 Cr	163,331 ↑ 25,000
Cyient Ltd (Industrials) Equity, Since 28 Feb 21 \| CYIENT	3%	₹72 Cr	733,339 ↓ -50,000
L&T Technology Services Ltd (Technology) Equity, Since 31 May 18 \| LTTS	3%	₹61 Cr	163,500 ↑ 39,000
Info Edge (India) Ltd (Communication Services) Equity, Since 31 Aug 20 \| NAUKRI	3%	₹56 Cr	107,330

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.