The CAGR calculation formula is incorrect, please correct it to [(Ending value - Starting value)^(365/number of days)]-1. The values are swapped while subsitution in ending value and starting value for CAGR. For the stock B example in CAGR, which has a time period of 791 days, 364 days is substituted wrongly. Please consider correcting these in the video

@varun0904

4 ай бұрын

I think you meant (Ending Value/starting value). Otherwise the units don't make sense.

@ashokwadhwani996

2 ай бұрын

Correct CAGR formula is [Ending Value/Initial Value]^[365/No. of day] - 1

@souravdutta8813

2 ай бұрын

It is still incorrect. The correct formula for CAGR is [{(Ending value/Starting value)^(No. of days/365)}-1]*100

The CAGR formula shown in the video is incorrect @4:17, 1 should come outside the index, i.e. [(Ending value/Beginning value)^(365/ number of days)-1] . The CAGR will come to around 16.047%. Its just a small correction Also the starting and ending value are swapped in the formula. Consider rectifying in the video! Good initiative Zerodha Varsity

@parag_

Жыл бұрын

Even the ending and starting value are swapped @4:11

@abhipatil4844

Жыл бұрын

Thanks bud

@DkRapperHotshot

Жыл бұрын

why no change in no. of days when they are invested for 2 different periods?

@drajaykeshari623

11 ай бұрын

@@DkRapperHotshot again wrong values are put in formula....Rangappa is saying simple calculation and himself making blunder in calculation...need correction in video.

@Rick_C137_op

11 ай бұрын

looks like they have't paid enough to video editor

The need to do complex math is RARELY the reason. We have strong biases. We still think Real estate and Gold are better avenues than the stock market and mutual funds. The land value of my house in Bangalore grew from 7 lakhs in 2004 to 90 lakhs in 2014. But it still stays the same in 2023. I cannot convince any of my relatives that real estate as an investment avenue is really bad for most of us. People only think of the boom period of real estate and think that is the best to grow wealth.

Brilliant video as explained something so complicated in such a simple way .Simple and to the point ....keep up the good work , Thanks a ton man

Amazing videos… crisp and simple…keep sharing 👍🏽

Got to know about CAGR today only.... Simple and best explanation 👌

Can't thank u enough for this effort, Karthik 🎉

Great initiative Zerodha and Karthick sir.

That's a really great initiative towards financial education

I thought the second video will come after 2024 general election,, thank you for your kind gesture 🙌

I started investing since college from my pocket money and continued!😊

Excellent analysis sir 🙏🙏

We can also calculate cagr via this too (Final invested amount/initial invested amount) 1/n -1 Where n= tenure

Fantastic learnings!! Thanks a ton

CAGR Correct Formula CAGR=[(Ending Value/Beginning value)^(365/No of Days)]-1 and then multiply the result by 100 to convert it in percentage.

Good basic learning video sir, thanks a lot❤

4:07 did you put the numbers in correctly? Ending value is on top and starting value at bottom?

can we apply the future value of money (amount that bank is obliged to give ) to compare FD return in present value of money (amount I am putting in FD right now) and know the worth in today's value?

this is gem

How to calculate CAGR for that plant example?

What will be the discount rate while calculating present value of money?

Great Initiative ! Incorrect values CAGR formula in first example

Thank you

Thank you sir

Thank you ❤

Good learning

I have a doubt, while you explain the last example of money taking now and after 2 years you have calculated of 9 percent FD return but you need to consider inflation right

CAGR and Present value formulas are incorrect

@pawansokhriya468

7 ай бұрын

No Its correct, in terms of days it is the one

4:03 - 2nd portfolio has higher CAGR than first one - second one has CAGR of 20.061 while first one has CAGR of 16.04 percent

Sir please increase ur frequency...😂☺️....keep that 1 week only.... please...☺️🤗....it is really useful to us...

Thanks Karthik sir your video is always great but i have a request, Could you start to create video on Risk management?

@varsitybyzerodha

Жыл бұрын

Hey Sagar, we'll look into the possibilities, thanks.

Super 👌🏻 👍🏻

I think the CAGR formula that you calculated for fund B is wrong because you have considered the time to be 1 year rather 2 year and 3 months. Kindly recheck it

How about a episode on saving tricks on personal finance..

in CAGR starting and ending values are substituted incorrectly please calculate wisely

In CAGR calculation how can be your ending value be 50,000 and starting value 58,000??

Currency devaluation is the biggest issue today, whether Yuan or Rupee or Dollar will make it who knows, mostly Yuan will make it....

What does the ^ symbol mean?

@7:28 to find the present value using discount factor formula had mistake, the amount comes out of the bracket.

Hi Karthik (Zerodha Varsity), I found some mistakes in CAGR formulas mentioned by you is [Ending Value/Initial Value]^[365/No. of day - 1] but correct CAGR formula = [Ending Value/Initial Value]^[365/No. of day] - 1. You have mentioned No. of daya in example of Investment A & B both 364 which is wrong. A is investment is for one year but B is more than 2 years. And also there is mistake in Present Value of Money formula: You have mentioned [Amount /(1+ Discount Rate)]^Time but correct formula = [Amount /(1+ Discount Rate)^Time].

Hi sir, how to calculate growth rate through XIRR, any formulae

@varsitybyzerodha

Жыл бұрын

Hi Gautam, we've explained this here :) tradingqna.com/t/measuring-mutual-fund-returns-xirr-cagr/40617

why did u put value of starting value in ending value

Hi Sir is the ending value and the starting value exchanged in both the calculations can you please check the same

@varsitybyzerodha

Жыл бұрын

Hi, this is because of a small typo.

@ 4:06, number of days is not 364. it's 2 years 3 months

The CAGR formula seems to be wrong and also 'no of days' considered for more than 2 years is still 364 days. It's very confusing. How can you say personal Finance is simple when gave wrong formula and wrong figures and making it complex? please correct it.

108 % calculation of CAGR did'nt get that part can someone explain 3:01

Sir please make a good video for SWP in coin app how can this plan

@varsitybyzerodha

11 ай бұрын

Hi, we'll look into the possibilities, thanks.

🤩🤩🤩

I started at the age of 38 as i was paying home loan till age of 40.

your calculation is wrong for CAGR, please check the initial value and final value. Formula also.

Thanks karthik & team. Is it possible to be part of your team to make a financial literacy awareness to indians? I am looking for the opportunity.

@varsitybyzerodha

Жыл бұрын

Hi Prasath, almost anything we do on the channel is an effort to contribute to financial literacy in India :) We'll continue doing this. If you have any specific ideas, do write to us on social@zerodha.com.

Sir i have one dought that how u divided 365/364 for two years

@bkmpatel7501

11 ай бұрын

+1

In present and future value of money we didn't count for inflation.

I started saving at 23

incorrect CAGR formula

taking money today makes a difference if there is an opportunity that gives more return than 9%

Starting at 36, 😢.

Ranga is 😊

got confused at 3.53 , they made a typo in the value explanation , cmon ! do better !

Please always speak in hindi in videos because many people can't understand you, when the people will not understand you then the people will not invest in stocks by these calculations.😊

1l is better because there is no tax as in FD 😉

At the age of 34 i inveter in mutual fund

Can you add subtitles, it would avoid using my headphones

@varsitybyzerodha

Жыл бұрын

Hi, we'll look into this, thanks.

Hindi me video banaye sir 😫🙏🙏💓😫🙏🙏💓

I started at the age of 32

For (50000,58000) I am getting CAGR as 13.82% and for (50000,60000) number of days becomes 820 hence CAGR coming to 7.79%. Seems like ur video editor too tried learning while editing and inserted his own calculations😄.

@varsitybyzerodha

Жыл бұрын

We'll look into this, Jay.

Each and every formula had got some mistakes. Make sure you don't confuse your viewers by showing wrong formulas. I had to watch other videos for clarification each time you guys show equations because I don't get the same answers as you got. The whole equations were so crap that even the calculator failed and showed error.

The formula for CAGR is also wrong like you did not want to stop making mistakes after previous video. -1 should have come outside the bracket. This small mistake will give totally wrong values for CAGR.

@jatin.sanghvi

17 сағат бұрын

The basic way to make sense of CAGR is what the annual interest rate should have been to get to the final value. Someone good is math can figure out the formula themselves.

@jatin.sanghvi

17 сағат бұрын

Even with mistakes, the videos are valuable, hence I will be going through the entire playlist.

@jatin.sanghvi

17 сағат бұрын

3:55 woah! Starting value swapped with final value. Hats off to you 🙇‍♂️

@jatin.sanghvi

17 сағат бұрын

I think I will need to stop pointing out errors (there will be a truckload of them) and just focus on the good parts.

wrong calculation shown in CAGR formula

@varsitybyzerodha

Жыл бұрын

That is a typo, Karan. Thanks for pointing it out.

Please review the videos before posting. The "no. of days" substitution is wrong and Jan 2023 - Mar 2025 is not 364 days. If you publish such videos then you are propagating confusion instead of education.