CAGR represents the compounded growth rate of your Mutual Fund investments. It helps you gauge a Mutual Fund scheme’s average annual growth over a period longer than 1 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.