Key Takeaway
Point-to-point returns show the absolute gain between two specific dates. Unlike CAGR, they don't annualize the return , making them useful for measuring performance over exact holding periods.
4 Yrs (1461 days)
80%
15.83%
What is Point-to-Point CAGR?
Point-to-Point CAGR measures the exact annualized growth rate between two specific historical calendar dates. Because it uses the precise day count (divided by 365.25), it offers an accurate representation of a fund's actual annual performance between your specific entry and exit dates.
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Frequently Asked Questions
What is a point-to-point return?
A point-to-point return is the CAGR calculated between two specific historical dates. It measures the compound annual growth rate of your investment between your exact purchase and redemption dates.
Why is point-to-point return useful?
It allows you to evaluate how a fund performed during specific market cycles, financial crises, or interest rate movements, rather than relying on generic calendar-year returns.
How does leap years affect point-to-point calculations?
A precise point-to-point returns calculator uses the exact number of days (divided by 365.25) to account for leap years, ensuring mathematically accurate annualized rates.
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