Traditional Investing & Portfolio Theory

What is the difference between CAGR and absolute returns?

Absolute return is the total percentage change in an investment over its full holding period, ignoring how long that period was; CAGR (compound annual growth rate) expresses that same change as a smoothed yearly rate. For example, ₹1,00,000 growing to ₹1,50,000 over three years is a 50% absolute return but roughly a 14.5% CAGR. Absolute returns can mislead across different timeframes, which is why CAGR is the fairer way to compare investments held for different durations. Past figures describe history and do not indicate future results.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.