# CAGR (Compound Annual Growth Rate)

The annualized return that smooths a fund’s ups and downs into one number.

Source data: AMFI daily NAV (17,900+ schemes) + Nifty benchmark indices. Last updated: 2026-07-02. Interactive tool: https://mfpro.tigzig.com

## What is CAGR?



CAGR (Compound Annual Growth Rate) measures the average annual return of an investment
 over a period, assuming profits are reinvested. It smooths out the ups and downs into
 one clean annualized number.

 


## Formula


 
 CAGR = (End NAV / Start NAV) (365 / days) − 1
 

For periods shorter than 1 year, we show the **absolute return** instead
 (simple percentage change), because annualizing short periods can be misleading.

 


## Worked Example



HDFC Flexi Cap - 3Y CAGR


Start NAV (2023-03-12): ₹1,200.45


End NAV (2026-03-12): ₹1,802.30


Days: 1,096


CAGR = (1802.30 / 1200.45) (365/1096) − 1 = **14.56%**


This means if the fund grew at exactly 14.56% every year for 3 years, you'd get the same result.

 
 


## How We Look Up Dates



Markets don't trade every day (weekends, holidays). When you ask for "1Y return",
 we look back exactly 365 calendar days from the as-of date. If that exact date has no NAV,
 we take the **closest prior trading day**. This is called "lookback with
 nearest prior date" and matches how AMFI and most fund houses report returns.

 


## Periods We Show



30D, 90D, 6M (absolute return) and 1Y, 2Y, 3Y, 5Y, 10Y (CAGR). The "All" period
 uses the fund's entire NAV history. You can also pick a custom date range.

 


## Edge Cases





- **Fund younger than the period:** If you ask for 5Y CAGR but the fund is
 only 3 years old, we show "-" (no data).

- **Short custom ranges:** Custom ranges under 365 days show absolute return,
 not CAGR, to avoid misleadingly large annualized numbers.

- **Holiday boundary:** A request for Jan 26 (Republic Day) will use the NAV
 from Jan 25 or the nearest prior trading day.

## Related metrics

More Returns methodology from the MFPRO analytics tool:

- [Rolling Returns](/mfpro/rolling-returns)

- [Standard Deviation (Volatility)](/mfpro/standard-deviation)

- [Maximum Drawdown](/mfpro/maximum-drawdown)

- [Calmar Ratio](/mfpro/calmar-ratio)

- [Beat Rate](/mfpro/beat-rate)

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Source: https://www.tigzig.com/mfpro/cagr-returns