CAGR

Definition	:	Compound Annual Growth Rate
Category	:	Business » Finance
Country/Region	:	Worldwide
Popularity	:
Type	:	Initialism

What does CAGR mean?

Compound Annual Growth Rate (CAGR) is the rate of return for an investment such as a mutual fund or bond over an investment period.
CAGR is a measure of the annualized rate of return that investment has generated over a specific period of time. It represents the average annual growth rate of an investment, taking into account the effects of compounding, which is the process of earning returns on both the principal amount invested and the accumulated interest or dividends.