What is absolute return in mutual funds?

Absolute return is the total percentage gain or loss on your investment, without considering the time period. Formula: Absolute Return = ((Current Value − Invested Amount) / Invested Amount) × 100. For example, if you invested ₹1 lakh and it grew to ₹1.5 lakh, absolute return = 50%. This differs from CAGR which is annualized.

What is XIRR in mutual funds?

XIRR (Extended Internal Rate of Return) is used to calculate the annualized return on investments with irregular cash flows, like monthly SIPs. Unlike CAGR (which works for a single lumpsum), XIRR accounts for each SIP instalment's different investment duration. It is the most accurate metric for measuring SIP returns.

Mutual Fund Return Calculator India – CAGR & Absolute Return

Lumpsum Investment

Invested Amount

₹

₹1K₹1Cr

Current Value

₹

₹1K₹2Cr

Investment Period

0.25 yr30 yr

CAGR

—

per annum, annualised

Return Breakdown

gain —

Invested

—

Gain / Loss

—

Formulas Used

CAGR

(FV / PV)^(1/n) − 1

FV = final value, PV = invested, n = years

Absolute Return

((FV − PV) / PV) × 100

Total % gain, not annualised

XIRR (SIP)

Newton-Raphson on IRR

Annualised return on monthly SIPs

CAGR Benchmark — Indian Mutual Funds

Category	5-Year CAGR	10-Year CAGR	Risk Level
Large-Cap Equity	10–13%	11–14%	Moderate
Mid-Cap Equity	12–18%	13–18%	Moderately High
Small-Cap Equity	14–22%	14–20%	High
Index (Nifty 50)	10–13%	~12%	Moderate
Debt / Liquid	6–7.5%	6–8%	Low
ELSS (Tax Saving)	11–16%	12–17%	Moderately High

Historical averages. Past returns do not guarantee future performance.

Frequently Asked Questions

What is CAGR in mutual funds?

CAGR is the annualised rate your investment grew. Formula: CAGR = (Final Value / Initial Value)^(1/years) − 1. Example: ₹1 lakh → ₹2 lakh in 5 years = CAGR of 14.87%.

What is absolute return vs CAGR?

Absolute return = total % gain over the holding period regardless of time. CAGR normalises this to a per-year figure. A 100% absolute return over 10 years = 7.18% CAGR. Use CAGR to compare funds held for different durations.

What is a good CAGR for a mutual fund in India?

A CAGR above 12% over 10+ years is considered excellent for equity funds in India. The Nifty 50 index has historically delivered ~12% CAGR. Debt funds typically deliver 6–8%. Any return consistently beating inflation (6%) and FD rates (7%) adds real value.

How is mutual fund return calculated from NAV?

Absolute return from NAV: ((Current NAV − Purchase NAV) / Purchase NAV) × 100. If you bought at ₹50 NAV and it's now ₹85, absolute return = 70%. Your profit in rupees = (Current NAV − Purchase NAV) × Units held.

What is XIRR and when should I use it?

Use XIRR when you've invested via SIP (monthly installments), since each installment has a different holding period. CAGR is only accurate for single lumpsum investments. XIRR is the industry standard metric for SIP performance, and this calculator approximates it using Newton-Raphson iteration.