Education . Total Return vs CAGR . 2 of 3 RupeeCase
The size of a return says nothing without its span.
Two hundred percent over twenty years and two hundred percent over two years are not the same fund. One is a plod. One is a rocket. The total on its own cannot tell you which one you are looking at.
Fund Total return Over Per year
Fund A214 pct12 yr10.0 pct
Fund B68 pct3 yr19.0 pct
Fund A puts the 214 on the poster and stays quiet about the twelve years behind it. Fund B puts the 19 a year on the poster. Read the per year column, the only one on a shared footing, and the loud fund is earning barely half. Same three years, same one lakh, that is Rs 1.33 lakh against Rs 1.69 lakh.