Returns & Performance
Compound Annual Growth Rate
Definition
What is Compound Annual Growth Rate?
The constant annual rate that would grow a starting value into an ending value over a period.
Example in practice
How This Looks in Practice
An investmentAn asset or commitment of money made with the expectation of future income, growth, or both. doubling in five years has a CAGR of about 14.9%.
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Related Terms
Returns & Performance
Total Return
The complete investment result from price changes plus income, assuming distributions are included.
Returns & PerformanceCapital Gain
The profit made when an asset or fund unit is sold for more than its cost.
Returns & PerformanceDividend
A payment made from a company's profits to eligible shareholders.
Costs & FeesManagement Fee
The recurring fee paid from fund assets to the fund manager for managing the portfolio.