New Delhi, Feb. 25 -- Tracking your investments is essential for understanding how your money performs over time. Skipping this practice will make it difficult to know if you're on the right track to meet your financial goals. One effective way to measure investment growth is CAGR.

The Compound Annual Growth Rate, or CAGR, is a financial metric that measures the annual growth of an investment over a period of time. It helps determine the rise or fall in investment returns for a certain period.

It highlights the average growth in investment on a yearly basis by considering profit reinvestments accrued at the end of every year.

Unlike simple averages, the CAGR takes into account the compounding effect to show the accurate performance of ...