Why Use a CAGR Calculator?
Unlike absolute returns, CAGR smooths out the ups and downs of the market, giving you a clear picture of annualized growth. For example, if your investment grew from ₹1 lakh to ₹2 lakh in five years, the CAGR calculator will tell you the annual growth rate, making comparisons easier across different investment options.
Where Do Fixed Maturity Plans Fit In?
If you’re considering fixed maturity plans (FMPs), CAGR becomes even more relevant. FMPs are closed-ended debt schemes that offer predictable returns over a fixed tenure. While they don’t fluctuate like equity funds, knowing the CAGR helps you compare FMP returns with other instruments like mutual funds or fixed deposits. It ensures you make informed decisions based on actual growth rather than just nominal figures.
Benefits of Using CAGR
- Clarity: Understand true annual growth, not just total returns.
- Comparison: Evaluate different investments on a common scale.
- Planning: Helps in setting realistic financial goals.
Who Should Use It?
Anyone investing in mutual funds, stocks, or FMPs should use a CAGR calculator. It’s especially useful for long-term investors who want to track performance without getting lost in market volatility.
Final Thought:
A CAGR Calculator is more than a number-crunching tool—it’s your guide to smarter investing. Combine it with disciplined strategies like SIPs and explore options like fixed maturity plans for a balanced portfolio. Start calculating today and take control of your financial future.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.