3
Beginner Understanding Returns
Learn the right way to measure returns — CAGR, XIRR, rolling returns, and why past performance needs context.
5 lessons
17 min total
What you'll learn
- The difference between absolute and annualized returns
- How CAGR works for lumpsum, XIRR for SIP
- Why rolling returns reveal true consistency
- How to measure if a fund actually beats the market
1
Absolute vs Annualized Returns
Why "50% return" is meaningless without knowing the time period.
2
What is CAGR
Compound Annual Growth Rate — the gold standard for measuring lumpsum investment performance.
3
XIRR for SIP Investors
Why CAGR doesn't work for SIPs and how XIRR gives you your real return rate.
4
Rolling Returns
Why a single 3Y return is misleading and how rolling returns show consistency.
5
Benchmarks & Alpha
How to tell if a fund is actually good or just riding the market.
Module Quiz
5 questions to test your understanding