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CAGR Calculator

Updated on July 24, 2024 , 19574 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 9.1% 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 (26 Jul 24)	₹34.494 ↑ 0.56 (1.66 %)
Net Assets (Cr)	₹3,695 on 30 Jun 24
Category	Equity - Sectoral
AMC	SBI Funds Management Private Limited
Rating	☆☆
Risk	High
Expense Ratio	2.52
Sharpe Ratio	2.82
Information Ratio	-1.09
Alpha Ratio	-5.09
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 Jun 19	₹10,000
30 Jun 20	₹7,741
30 Jun 21	₹11,369
30 Jun 22	₹11,338
30 Jun 23	₹15,472
30 Jun 24	₹30,459

SBI PSU Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹598,181.
Net Profit of ₹298,181 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 26 Jul 24

Duration	Returns
1 Month	4.1%
3 Month	9.7%
6 Month	28.3%
1 Year	86.1%
3 Year	40.7%
5 Year	27.3%
10 Year
15 Year
Since launch	9.1%

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	0.08 Yr.

Data below for SBI PSU Fund as on 30 Jun 24

Equity Sector Allocation

Sector	Value
Financial Services	31.38%
Utility	22.65%
Energy	15.95%
Industrials	13.12%
Basic Materials	8.45%

Asset Allocation

Asset Class	Value
Cash	8.45%
Equity	91.55%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
State Bank of India (Financial Services) Equity, Since 31 Jul 10 \| SBIN	14%	₹524 Cr	6,177,500 ↑ 2,300,000
GAIL (India) Ltd (Utilities) Equity, Since 31 May 24 \| GAIL	9%	₹340 Cr	15,500,000 ↑ 12,450,000
Power Grid Corp Of India Ltd (Utilities) Equity, Since 31 Jul 10 \| POWERGRID	9%	₹332 Cr	10,035,554 ↑ 4,150,000
NTPC Ltd (Utilities) Equity, Since 31 Jul 10 \| NTPC	4%	₹164 Cr	4,343,244
Bharat Electronics Ltd (Industrials) Equity, Since 30 Jun 24 \| BEL	4%	₹147 Cr	4,800,000 ↑ 4,800,000
Coal India Ltd (Energy) Equity, Since 30 Sep 21 \| COALINDIA	4%	₹130 Cr	2,750,000
Life Insurance Corporation of India (Financial Services) Equity, Since 29 Feb 24 \| 543526	4%	₹130 Cr	1,310,000 ↑ 460,000
Petronet LNG Ltd (Energy) Equity, Since 30 Jun 24 \| PETRONET	3%	₹116 Cr	3,500,000 ↑ 3,500,000
General Insurance Corp of India (Financial Services) Equity, Since 31 May 24 \| GICRE	3%	₹114 Cr	3,000,000 ↑ 1,800,000
SBI Life Insurance Company Limited (Financial Services) Equity, Since 30 Jun 24 \| SBILIFE	3%	₹112 Cr	750,000 ↑ 750,000

2. Invesco India PSU Equity Fund

To generate capital appreciation by investing in Equity and Equity Related Instruments of companies where the Central / State Government(s) has majority shareholding or management control or has powers to appoint majority of directors. 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.

Invesco India PSU Equity Fund is a Equity - Sectoral fund was launched on 18 Nov 09. It is a fund with High risk and has given a CAGR/Annualized return of 13.9% since its launch. Ranked 33 in Sectoral category. Return for 2023 was 54.5% , 2022 was 20.5% and 2021 was 31.1% .

Below is the key information for Invesco India PSU Equity Fund

Invesco India PSU Equity Fund Growth
Launch Date	18 Nov 09
NAV (26 Jul 24)	₹68.85 ↑ 1.09 (1.61 %)
Net Assets (Cr)	₹1,363 on 30 Jun 24
Category	Equity - Sectoral
AMC	Invesco Asset Management (India) Private Ltd
Rating	☆☆☆
Risk	High
Expense Ratio	2.46
Sharpe Ratio	3.34
Information Ratio	-0.8
Alpha Ratio	6.33
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 Jun 19	₹10,000
30 Jun 20	₹9,836
30 Jun 21	₹13,587
30 Jun 22	₹13,209
30 Jun 23	₹18,874
30 Jun 24	₹36,818

Invesco India PSU Equity 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 Invesco India PSU Equity Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 26 Jul 24

Duration	Returns
1 Month	1.7%
3 Month	15%
6 Month	36.9%
1 Year	84.6%
3 Year	39.3%
5 Year	31.8%
10 Year
15 Year
Since launch	13.9%

Historical performance (Yearly) on absolute basis

Year	Returns
2023	54.5%
2022	20.5%
2021	31.1%
2020	6.1%
2019	10.1%
2018	-16.9%
2017	24.3%
2016	17.9%
2015	2.5%
2014	54.5%

Fund Manager information for Invesco India PSU Equity Fund

Name	Since	Tenure
Dhimant Kothari	19 May 20	4.12 Yr.

Data below for Invesco India PSU Equity Fund as on 30 Jun 24

Equity Sector Allocation

Sector	Value
Industrials	36.61%
Financial Services	23.51%
Utility	22.33%
Energy	14.56%

Asset Allocation

Asset Class	Value
Cash	2.99%
Equity	97.01%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Power Grid Corp Of India Ltd (Utilities) Equity, Since 28 Feb 22 \| POWERGRID	9%	₹118 Cr	3,556,510 ↑ 897,947
Hindustan Aeronautics Ltd Ordinary Shares (Industrials) Equity, Since 31 May 22 \| HAL	9%	₹117 Cr	221,859
Bharat Electronics Ltd (Industrials) Equity, Since 31 Mar 17 \| BEL	8%	₹114 Cr	3,715,873
NTPC Ltd (Utilities) Equity, Since 31 May 19 \| NTPC	8%	₹104 Cr	2,741,416 ↑ 223,921
State Bank of India (Financial Services) Equity, Since 28 Feb 21 \| SBIN	7%	₹101 Cr	1,189,110 ↑ 114,962
Bharat Petroleum Corp Ltd (Energy) Equity, Since 30 Sep 18 \| BPCL	6%	₹84 Cr	2,775,528 ↑ 1,220,272
Coal India Ltd (Energy) Equity, Since 31 Aug 23 \| COALINDIA	6%	₹81 Cr	1,711,852
Bank of Baroda (Financial Services) Equity, Since 30 Jun 21 \| BANKBARODA	5%	₹71 Cr	2,560,301 ↑ 1,092,411
Bharat Dynamics Ltd Ordinary Shares (Industrials) Equity, Since 31 May 22 \| BDL	5%	₹70 Cr	439,050 ↑ 16,813
BEML Ltd (Industrials) Equity, Since 31 Aug 23 \| BEML	4%	₹55 Cr	124,817

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 (26 Jul 24)	₹11.5525 ↑ 0.00 (0.02 %)
Net Assets (Cr)	₹123 on 30 Jun 24
Category	Debt - Credit Risk
AMC	BOI AXA Investment Mngrs Private Ltd
Rating	Not Rated
Risk	Moderate
Expense Ratio	1.55
Sharpe Ratio	-0.58
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%
Effective Maturity	6 Months 11 Days
Modified Duration	5 Months 12 Days

Growth of 10,000 investment over the years.

Date	Value
30 Jun 19	₹10,000
30 Jun 20	₹5,367
30 Jun 21	₹6,127
30 Jun 22	₹14,847
30 Jun 23	₹15,630
30 Jun 24	₹16,631

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 26 Jul 24

Duration	Returns
1 Month	0.3%
3 Month	0.9%
6 Month	3.4%
1 Year	6.2%
3 Year	39.3%
5 Year	10.3%
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	9.35 Yr.

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

Asset Allocation

Asset Class	Value
Cash	49.53%
Debt	50.13%
Other	0.35%

Debt Sector Allocation

Sector	Value
Corporate	60.99%
Cash Equivalent	38.67%

Credit Quality

Rating	Value
AA	82.1%
AAA	17.9%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Century Textiles And Industries Limited Debentures \| -	10%	₹12 Cr	1,200,000
Steel Authority Of India Limited Debentures \| -	9%	₹12 Cr	1,150,000
JSW Steel Limited Debentures \| -	8%	₹10 Cr	1,000,000
360 One Prime Ltd. 9.22% Debentures \| -	8%	₹10 Cr	1,000,000 ↑ 1,000,000
Gic Housing Finance Limited Debentures \| -	8%	₹10 Cr	1,000,000
Manappuram Finance Limited Debentures \| -	8%	₹10 Cr	1,000,000
Godrej Industries Limited Debentures \| -	8%	₹10 Cr	1,000,000
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
Treps CBLO/Reverse Repo \| -	13%	₹17 Cr

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.