Is CAGR used to calculate SIP returns in mutual funds?

Compounded Annual Growth Rate or CAGR is used to calculate the annualised growth rate of mutual fund or any other instrument.

However if you wish to calculate the growth rate of your investments that come in at various points in time, you can consider XIRR (Extended Internal Rate of Return). This is like CAGR but takes care of various investments at various points in time.

By using a portal like Jama.co.in you can easily get to know the XIRR of your investments.

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