CAGR 10Y

Compounded annual growth rate 10Y is an annualized return metric over a horizon of 10 years.

Formula = {(Ending NAV/Beginning NAV)^(1/10)} – 1

CAGR is the average growth over the horizon, the year wise returns might be erratic and uneven.

For eg : Following are the NAVs of fund A on different dates

31st March 2011 : 75

31st March 2016 : 150

31st March 2018 : 175

31st March 2021 : 225

Returns as of 31st March 2021 would be :

CAGR 3Y = {(225/175)^(1/3)}-1 = 8.74%

CAGR 5Y = {(225/150)^(1/5)}-1 = 8.45%

CAGR 10Y = {(225/75)^(1/10)}-1 = 11.61%