What is Mutual Fund Returns?
Mutual fund returns are measured in two ways. Absolute return shows the total percentage gain or loss regardless of time. CAGR (Compound Annual Growth Rate) smooths the gain into a yearly rate, making it the right figure to compare funds held for different periods.
Formula
Two return measures:
Absolute Return = (Current − Invested) / Invested × 100 CAGR = (Current / Invested)^(1 / years) − 1, then × 100 CAGR is the right metric to compare investments held over different time horizons.
How to use this calculator
Enter the amount you invested, the current value of the holding, and how many years you've held it. The calculator shows both the absolute return and the annualised CAGR.