CAGR (Compound Annual Growth Rate) shows the average annual growth rate of an investment over a period of time. It helps compare returns of different investments.
1. What does CAGR mean?
It represents the annual growth rate of an investment over time.
2. Is CAGR better than absolute return?
Yes, CAGR gives a more accurate picture of growth.
3. Can CAGR be negative?
Yes, if investment value decreases.
4. Where is CAGR used?
Used in stocks, mutual funds and business growth analysis.
5. Is CAGR always accurate?
It is an average value, actual returns may vary.