CAGR (Compound Annual Growth Rate) signifies the compounded growth rate of your mutual fund investments, providing insight into the average annual growth of a mutual fund scheme over periods longer than one year.

For example: If a mutual fund scheme has given CAGR returns of 15% over a period of 3 or 5 years. This means that the scheme has given an average annual return of 15%. It is possible that in a particular year, the scheme might give a negative return and in another year more positive.