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CAGR
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CAGR stands for Compound Annual Growth Rate.

Its meaning is very simple – it is the growth rate of a company expressed on an annualized basis. This is the average growth rate of the company over some years, and takes into consideration the effect of compounding.

Understanding the principle of CAGR is very important, because it is used at many places. For example, it is looked at while examining at returns generated by mutual funds (MFs). CAGR should also be used while considering any other investment.

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