What does CAGR mean in MF?

To calculate mutual fund returns, you can use the absolute return formula or the compound annual growth rate (CAGR) formula. The first does not take investment time into consideration and the second includes the investment period and tells you how much your investment earns you every year, regardless of the fund’s annual performance. CAGR is similar to the compound interest rate formula. Performance data presented in fact sheets etc. for more than one year is expressed in CAGR. CAGR notes are used only for point to point returns; you cannot use CAGR for SIPs, withdrawal plans (SWPs), etc.