Which Cagr Is Good?

But speaking generally, anything between 15% to 25% over 5 years of investment can be considered as a good compound annual growth rate when investing in stocks or mutual funds.

Is a higher or lower CAGR better?

The CAGR Ratio shows you which is the better investment by comparing returns over a time period. You may select the investment with the higher CAGR Ratio. For example, an investment with a CAGR of 10% is better as compared to an investment with a CAGR of 8%.

What does 10% CAGR mean?

CAGR shows the average yearly growth of your investments. ... You may select the investment with the higher CAGR Ratio. CAGR = (Ending Investment Value) / (Beginning Investment Value) ^ (1/n) -1. For example, an investment with a CAGR of 10% is better as compared to an investment with a CAGR of 8%.

James H. Sterling

James H. Sterling

Environmental Science & Climate Journalist

James Sterling reports on renewable energy developments, climate policy, ecological conservation, and green tech innovations around the globe.