BAJAJ BROKING

open-demat-imgOpen Demat
Login-imgLogin
be-a-partner-imgBe a Partner
samadhan-imgSamadhan
open-demat-imgOpen Demat
InstallInstall App
Download AppInstall App
Notification
No new Notification messages
Stallion India Fluorochemicals IPO is Open!
Apply for the Stallion India Fluorochemicals IPO through UPI in just minutes.
Open a Free Demat Account
Pay ZERO maintenance charges for the first year, get free stock picks daily, and more.
Trade Now, Pay Later with up to 4x
Never miss a good trading opportunity due to low funds with our MTF feature.
Track Market Movers Instantly
Stay updated with real-time data. Get insights at your fingertips.

How to Calculate CAGR (Compound Annual Growth Rate)?

Listen to our Podcast: Grow your wealth and keep it secure.

0:00 / 0:00
How to calculate CAGR

The compound annual growth rate (CAGR) is an essential metric used to evaluate the annualized return on investments over a specific period. Unlike straightforward growth calculations, CAGR provides a smoothed rate of growth, making it highly suitable for analyzing fluctuating returns. For example, investors use CAGR to compare the performance of various investments or to understand the growth trajectory of systematic investment plans (SIPs).

To calculate CAGR for investments, follow this formula: Divide the ending value by the beginning value, raise the result to the power of one divided by the number of years, and subtract one. This calculation provides the mean annual growth rate, which is especially beneficial for determining returns in volatile markets. For SIP investors, tools like a CAGR calculator for SIP or spreadsheet formulas are indispensable for accurate computations.

When considering SIPs, it is important to understand how to calculate CAGR for SIP. SIP investments involve periodic contributions, meaning each installment grows for a different duration. This complexity requires methods such as XIRR for precise results. By using these tools, investors can assess their SIP performance effectively and make better financial decisions.

Understanding CAGR also helps answer questions like what is CAGR in mutual fund or what is CAGR in SIP. It highlights the mean annual growth rate of investments, smoothing out fluctuations over time. This makes CAGR one of the most accurate methods for evaluating the long-term performance of mutual funds or SIPs.

What Is the Compound Annual Growth Rate (CAGR)?

The compound annual growth rate (CAGR) is a financial measure used to calculate the mean annual increase of an investment over a set timeframe. It is determined by dividing the final value by the initial value, raising the result to the power of one divided by the total years, and subtracting one. This method generates a consistent annual growth figure that incorporates the effects of compounding, making it a reliable tool for investment analysis.

CAGR is widely used in mutual funds and SIP investments to evaluate performance. For example, investors often ask what is CAGR in mutual fund to understand how their portfolio has performed over time. Similarly, queries like what is CAGR in SIP are common among SIP investors seeking clarity on long-term growth. By presenting a clear picture of returns, CAGR helps compare investment options and assess financial goals effectively.

What Is Compounding?

Compounding is the process by which the value of an investment grows over time, generating earnings not only on the initial amount invested but also on the accumulated returns from prior periods. This concept, often referred to as “interest on interest,” forms the foundation for understanding how investments grow exponentially over extended periods. For example, in mutual funds, compounding enables reinvested returns to contribute to greater earnings over time.

When assessing systematic investment plans (SIPs), the role of compounding becomes even more significant. SIP investors frequently use tools like a CAGR calculator for SIP to measure how compounding impacts the overall growth of their investments. By contributing a fixed amount regularly, investors can benefit from consistent compounding, regardless of market volatility.

Investors often seek clarity on how to calculate CAGR for SIP to evaluate the compounded returns accurately. Unlike simple interest calculations, compounding allows each SIP installment to grow for varying durations, enhancing the total value over time. Tools like CAGR calculators simplify this process by offering precise calculations tailored to SIPs.

Understanding compounding also helps answer key questions such as what is CAGR in mutual fund and what is CAGR in SIP. These questions highlight the importance of measuring the mean annual growth rate over time, which reflects the power of compounding in generating wealth through disciplined investments.

How to Calculate CAGR (Compound Annual Growth Rate)?

The compound annual growth rate (CAGR) is a financial metric used to calculate the average annual growth of an investment over a specified time period. It is especially helpful in assessing investments that grow at inconsistent rates over time. Investors commonly rely on CAGR to compare various investment options and their historical performance.

To calculate CAGR, use the formula: (Ending Value / Beginning Value)^(1 / Number of Years) - 1. This method provides a single growth rate representing the compounded returns over the entire period. For example, individuals often search how to calculate CAGR for SIP to analyze their systematic investment plans (SIPs). CAGR smooths out fluctuations, offering an accurate assessment of average returns.

When evaluating SIPs, using a CAGR calculator for SIP becomes essential. SIP investments grow over varying durations, making direct calculations less precise. These calculators allow investors to incorporate multiple factors such as periodic contributions and varying durations, ensuring accurate results tailored to SIP investments.

Questions like what is CAGR in mutual fund or what is CAGR in SIP often arise when investors seek clarity about their portfolio's performance. These terms underline CAGR's importance in providing an annualized growth figure, which is vital for effective financial planning and decision-making.

What is CAGR Calculator for SIP?

A CAGR calculator for SIP is a utility tool that helps you calculate your investment’s compound annual growth rate. As SIPs involve periodic contributions, each installment grows for a different duration, making manual CAGR calculations complex. A SIP CAGR calculator simplifies this process by automating the formula and accounting for these variations.

To calculate CAGR for SIP, you need to input the following three variables:

  • Beginning value of the investment

  • Value after the investment

  • Duration of the investment

By addressing questions such as what is CAGR in mutual fund and what is CAGR in SIP, this tool provides precise insights into long-term returns. It is an essential resource for investors to assess and compare their SIP performance effortlessly.

Example of CAGR Calculation for SIP

Calculating the compound annual growth rate (CAGR) for a systematic investment plan (SIP) involves determining the average annual growth rate of investments over a specific period. The calculation accounts for periodic investments and the varying durations for which these contributions remain invested.

Here’s an example to illustrate:

  • Monthly SIP investment: ₹10,000

  • Total investment period: 3 years

  • Total invested amount: ₹3,60,000

  • Value at the end of 3 years: ₹5,00,000

To calculate CAGR:

  1. Identify the beginning value of the investment (₹3,60,000).

  2. Determine the value after the investment period (₹5,00,000).

  3. Note the investment duration (3 years).

  4. Apply the formula: (Ending Value / Beginning Value)^(1 / Number of Years) - 1.

Using the above data, the calculated CAGR reflects the annual growth rate for this SIP. Investors often rely on tools like a CAGR calculator for SIP for accurate and efficient computations, especially when analyzing multiple SIP contributions over different periods. Understanding how to calculate CAGR for SIP allows investors to measure growth effectively and plan future investments.

Importance of CAGR in SIPs

The compound annual growth rate (CAGR) is a critical metric for evaluating the performance of systematic investment plans (SIPs). It provides a smoothed annual growth rate, allowing investors to understand their SIP's performance over a specific time frame. Unlike absolute returns, CAGR accounts for the compounding effect, offering a clearer picture of how the investment grows year over year.

CAGR is essential for addressing queries such as what is CAGR in mutual fund or what is CAGR in SIP, as it simplifies the evaluation of long-term returns. It also enables investors to compare SIPs with other investment options, ensuring informed decision-making. Tools like a CAGR calculator for SIP make the process convenient and accurate, helping investors track their growth efficiently.

Additional Uses of Compound Annual Growth Rate (CAGR)

The compound annual growth rate (CAGR) is a vital metric with multiple applications. While it is commonly used to calculate investment returns, its relevance extends beyond that. CAGR helps investors compare options, track financial or business performance, and identify areas of improvement. By eliminating annual fluctuations and focusing on average growth, it provides a more accurate representation of trends over time.

In addition to being a tool for understanding growth patterns, CAGR is also used by businesses to monitor key metrics such as market share or profit margins. It allows them to assess sustainability and refine their strategies for the future. This makes CAGR invaluable in both investment and business contexts.

Comparing Investments

CAGR is a critical tool for comparing the performance of different investment options. It calculates a single annualized growth rate, smoothing fluctuations that occur over the evaluation period. This is particularly useful when analyzing investments with inconsistent returns, such as mutual funds, SIPs, or stocks.

For example, consider an investor evaluating two portfolios—one in mutual funds and another in fixed deposits. Using the CAGR formula, they can determine which option provided better returns over time:

  • CAGR = (Ending Value / Beginning Value)^(1 / Number of Years) - 1

In SIPs, calculating CAGR is more complex because contributions are made periodically. This is where a CAGR calculator for SIP becomes invaluable. These tools account for the varying durations of each investment, providing precise calculations. Investors should also understand how to calculate CAGR for SIP, as it equips them to compare SIP performance with other investment options effectively.

CAGR also helps answer queries like what is CAGR in mutual fund, which highlights its utility in evaluating the returns of long-term portfolios. Its versatility makes it one of the most reliable metrics for financial comparison.

Tracking Performance

CAGR plays a vital role in tracking the growth of financial or business metrics over time. It calculates the average annual growth rate by eliminating inconsistencies caused by year-to-year variations, offering a clear picture of sustained performance.

For businesses, CAGR is used to monitor key indicators such as revenue, market share, or profit margins. For investors, it answers queries like what is CAGR in SIP, helping them refine strategies for long-term portfolio growth. It is an indispensable tool for identifying patterns and ensuring consistent improvement.

Identifying Strengths and Weaknesses

CAGR is instrumental in identifying strengths and weaknesses by comparing growth metrics. For example, if a company’s revenue CAGR exceeds its customer satisfaction CAGR, it signals areas requiring attention.

These insights empower investors and businesses to refine strategies, ensuring balanced growth across all performance metrics.

How Investors Utilize Compound Annual Growth Rate (CAGR)

Investors widely use the compound annual growth rate (CAGR) to make informed decisions about their portfolios. Here are the key ways in which CAGR is utilized:

  • Comparing Investment Performance: Investors use CAGR to evaluate and compare the growth of different investments, such as mutual funds, SIPs, and fixed deposits, over a specific time period. By calculating a smoothed annual growth rate, CAGR eliminates fluctuations and provides a clearer picture of performance.

  • Analyzing SIP Growth: A CAGR calculator for SIP is often used to measure the performance of systematic investment plans. By accounting for periodic contributions and compounding effects, these tools help investors understand how to calculate CAGR for SIP and analyze their SIP returns.

  • Evaluating Mutual Fund Returns: For queries like what is CAGR in mutual fund, investors rely on CAGR to track the average annual growth rate of their mutual fund investments. It provides an easy way to measure long-term returns.

  • Tracking Business Metrics: Beyond investments, CAGR helps track financial metrics like revenue or profit growth over time. Businesses and investors alike use it to assess consistent growth patterns.

  • Making Strategic Decisions: Understanding metrics such as what is CAGR in SIP allows investors to identify trends and make data-driven investment decisions for sustained portfolio growth.

What Is a Good Compound Annual Growth Rate (CAGR)?

A good compound annual growth rate (CAGR) varies depending on the investment type and market conditions. For equity-based investments such as mutual funds or SIPs, a CAGR between 10% and 15% is often considered favorable. This range typically outperforms inflation and provides a reasonable return for long-term investors. For fixed-income instruments like bonds, a CAGR of 5% to 8% is generally regarded as acceptable.

Understanding how to calculate CAGR helps investors determine whether their portfolio meets their financial goals. Using tools like a CAGR calculator for SIP simplifies the process, enabling precise calculations. Queries like what is CAGR in mutual fund or what is CAGR in SIP often arise when evaluating whether an investment’s growth aligns with expected benchmarks.

Smooth Growth Limitations of Compound Annual Growth Rate (CAGR)

The compound annual growth rate (CAGR) is a reliable metric for assessing investment performance over a specific period. However, it is not without limitations. One key drawback of CAGR is that it assumes smooth and consistent growth, which may not reflect real-world volatility. For example, an investment experiencing fluctuating annual returns will appear stable when viewed solely through CAGR.

CAGR also fails to account for interim cash flows or variable contributions, which can impact actual returns. In cases such as systematic investment plans (SIPs), using a CAGR calculator for SIP is helpful, but it still provides only an average growth rate rather than reflecting market fluctuations or contribution timing. This is why understanding how to calculate CAGR alongside other metrics is essential for a comprehensive analysis.

Another limitation of CAGR is its inability to highlight risks associated with investments. For instance, while CAGR can answer questions like what is CAGR in mutual fund, it does not reveal the risks or market downturns encountered during the investment period. Similarly, what is CAGR in SIP only explains the mean annual growth, not the volatility.

To overcome these limitations, investors should use CAGR in combination with other financial metrics like the standard deviation or XIRR, particularly for SIPs. This ensures a balanced understanding of both growth and risk factors in investment performance.

Other Limitations of Compound Annual Growth Rate (CAGR)

While the compound annual growth rate (CAGR) is a widely used financial metric, it is not without its limitations. One significant drawback is that CAGR does not account for interim cash flows, making it less suitable for investments involving periodic contributions, such as systematic investment plans (SIPs). Even when using a CAGR calculator for SIP, the result provides only an average growth rate without reflecting cash flow timing or market volatility.

Another limitation is its inability to showcase the impact of investment risks. For example, while CAGR can answer questions like what is CAGR in mutual fund, it does not reveal fluctuations or losses during the investment period. This lack of risk analysis makes CAGR less effective for assessing the overall safety of an investment.

CAGR also assumes steady growth throughout the investment duration. This assumption can mislead investors into thinking that their portfolio has grown consistently, even if it experienced significant ups and downs. For SIPs, understanding how to calculate CAGR for SIP and combining it with other metrics like XIRR ensures a more accurate performance evaluation.

Lastly, CAGR provides a limited view of performance metrics when used alone. To gain a comprehensive understanding, investors should pair CAGR with additional tools that consider volatility, such as standard deviation, to address questions like what is CAGR in SIP more holistically.

Compound Annual Growth Rate (CAGR) vs. Internal Rate of Return (IRR)

CAGR and IRR are two important metrics used to evaluate investment performance. While both assess returns over a specific time period, their methodologies and use cases differ significantly. Below is a comparison of CAGR and IRR to help understand their applications:

Aspect

Compound Annual Growth Rate (CAGR)

Internal Rate of Return (IRR)

Definition

The average annual growth rate of an investment, assuming consistent compounding over the period.

The discount rate at which the net present value (NPV) of all cash flows (inflows and outflows) equals zero.

Use Case

Commonly used to evaluate the performance of mutual funds, SIPs, and other investments over time.

Ideal for projects or investments with multiple cash flows at irregular intervals.

Calculation

Simple formula: CAGR = (Ending Value / Beginning Value)^(1 / Number of Years) - 1

Requires iterative computation using software or financial calculators to solve for NPV = 0.

Assumptions

Assumes smooth and consistent growth throughout the investment period.

Accounts for fluctuating cash flows and irregular contributions.

Tools

Tools like a CAGR calculator for SIP help investors understand how to calculate CAGR for systematic investments.

IRR calculators or spreadsheet functions (like Excel’s IRR function) are used for precise calculations.

Relevance

Addresses questions like what is CAGR in mutual fund and what is CAGR in SIP for simplified growth assessment.

Useful for comparing projects or investments with varied cash inflows and outflows.

CAGR is best suited for straightforward investments, while IRR is more robust for analyzing projects or investments with complex cash flows. Both metrics are valuable tools depending on the scenario.

Conclusion

The compound annual growth rate (CAGR) is a valuable tool for evaluating investment performance and understanding long-term growth trends. By providing a smoothed annual growth rate, it helps investors compare returns across various investment options, such as mutual funds and SIPs. Tools like a CAGR calculator for SIP simplify the process, making it easier for investors to determine how to calculate CAGR for SIP and track portfolio performance effectively.

While CAGR addresses questions like what is CAGR in mutual fund or what is CAGR in SIP, it should be used alongside other metrics to ensure a comprehensive evaluation. By combining CAGR with additional analysis methods, investors can gain deeper insights into both growth potential and associated risks, ensuring smarter financial decisions for the future.

Do you have a trading account app or demat account app? You can open an account with Bajaj Broking in minutes. Download the Bajaj Broking app now from Play Store or App Store.

Download App

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

For All Disclaimers Click Here: https://bit.ly/3Tcsfuc

Share this article: 

Frequently Asked Questions

search icon

How Does Compound Annual Growth Rate (CAGR) Differ from a Growth Rate?

Answer Field

CAGR calculates average annual growth with compounding over a period, offering accuracy for investments. In contrast, a growth rate shows simple percentage changes without accounting for compounding. Using a CAGR calculator for SIP ensures precise results for systematic investments.

What is Risk-Adjusted Compound Annual Growth Rate (CAGR)?

Answer Field

Risk-adjusted CAGR measures annualized growth while accounting for investment risks or volatility. It is valuable for evaluating safer investments. For mutual funds, tools addressing how to calculate CAGR include risk factors, ensuring returns align with performance goals.

What Does a High Compound Annual Growth Rate (CAGR) Indicate?

Answer Field

A high CAGR reflects significant annualized growth, demonstrating successful investment performance. For instance, understanding how to calculate CAGR for SIP can highlight consistent returns over years, essential for assessing mutual funds or systematic plans.

Is Compound Annual Growth Rate (CAGR) the Same as Average Return?

Answer Field

No, CAGR differs as it factors in compounding, ensuring growth smoothing over time. Average returns lack precision for fluctuating investments. Questions like what is CAGR in SIP highlight CAGR’s advantage in accurate long-term growth evaluation.

What Factors Can Affect Compound Annual Growth Rate (CAGR)?

Answer Field

CAGR depends on factors such as investment duration, market volatility, and contribution timing. A CAGR calculator for SIP provides clarity by including these elements, helping investors accurately track systematic plan growth and risks.

Can Compound Annual Growth Rate (CAGR) Be Negative?

Answer Field

Yes, negative CAGR indicates declining investments over time. It’s common in volatile markets. To assess losses or understand what is CAGR in mutual fund declines, investors rely on detailed CAGR tools for evaluation.

What is an Example of Compound Annual Growth Rate (CAGR)?

Answer Field

If ₹1 lakh grows to ₹2 lakh in 5 years, CAGR reflects annualized growth. Use CAGR calculator for SIP for systematic plans, ensuring consistent compounding calculations over variable timeframes for accurate growth tracking.

How Can Compound Annual Growth Rate (CAGR) Be Used in Investment Decisions?

Answer Field

CAGR helps compare investments like SIPs and mutual funds by smoothing annual growth. Learning how to calculate CAGR for SIP ensures informed decisions, aiding long-term portfolio planning with realistic growth insights.

No Result Found

Read More Blogs

blogimage

Gold Rate Today | 15 January 2025 | Gold Price in India

Update with gold rate today 15 January 2025, & last 10 days gold price in India, based on rupees per gram for 18, 24 & 22 Carat/Karat in major Indian cities.

15 Jan, 2025 | 40 Min. read
blogimage

Delhi Court Discharges JSW Steel in Corruption Case; HC Clears Monnet Takeover

Delhi court clears JSW Steel in coal block corruption case. High Court approves Monnet Ispat takeover under insolvency resolution. Latest updates on JSW Steel share price.

15 Jan, 2025 | 2 Min. read
blogimage

IRFC Emerges L1 Bidder to Finance ₹3,167 Crore for Banhardih Coal Block

IRFC secures L1 bidder status to finance ₹3,167 crore for Banhardih Coal Block. Learn how this impacts the IRFC share price and project developments.

15 Jan, 2025 | 2 Min. read
blogimage

Cipla’s Tax Demand Reduced to ₹559.18 Crores After Revision

Cipla’s tax demand reduced from ₹773.44 crores to ₹559.18 crores for AY 2015-16 to AY 2022-23. Learn how this impacts Cipla share price.

15 Jan, 2025 | 2 Min. read
blogimage

Govt Plans 5-6% Hike in Highway Budget for FY26 After FY25 Slump

Government likely to raise highway budget by 5-6% in FY26 to boost infra projects. Learn how it impacts the Infra Stock share price.

15 Jan, 2025 | 2 Min. read
blogimage

Rikhav Securities IPO- Key Objective & Deep Analysis

Get Insights of Rikhav Securities IPO before making a successful IPO investment. Apply & reserve your allotment for Rikhav Securities Ltd IPO with Bajaj Broking.

15 Jan, 2025 | 5 Min. read
blogimage

Landmark Immigration IPO- Key Objective & Deep Analysis

Get Insights of Landmark Immigration IPO before making a successful IPO investment. Apply & reserve your allotment for current IPO with Bajaj Broking.

15 Jan, 2025 | 5 Min. read
blogimage

HCL Tech expands partnership with Microsoft to transform contact centres

HCL Tech partners with Microsoft to enhance contact centres using AI and cloud solutions. Integration includes Nuance services, accelerating efficiency and boosting customer experience.

14 Jan, 2025 | 2 Min. read
blogimage

BEL secures new orders worth Rs 561 crore, boosting FY25 order book

BEL bags additional orders worth Rs 561 crore, raising its FY25 order book to Rs 10,362 crore. The company targets Rs 25,000 crore for FY25.

14 Jan, 2025 | 2 Min. read
blogimage

ITI Ltd secures Rs 64 crore contracts for Wi-Fi and CCTV systems

ITI Ltd wins Rs 64 crore orders for Wi-Fi & LAN at Sambalpur University and CCTV-based security systems at six Mumbai railway stations.

14 Jan, 2025 | 2 Min. read

Our Secure Trading Platforms

Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading

Bajaj Broking App Download

8 Lacs+ Users

icon-with-text

4.4+ App Rating

icon-with-text

4 Languages

icon-with-text

₹5300+ Cr MTF Book

icon-with-text

Open Account Instantly

Enter the 4- Digit OTP sent to 80808 80808

OTP expires in: 00:59

Open Demat Account

TRENDING CALCULATORS AND STOCKS ON BAJAJ BROKING

Popular Stock

top-popular-on-bfsl

POPULAR STOCKS: Tata Motors Share Price Infosys Share Price IRFC Share Price SBI Card Share Price Cipla Share Price NBCC Share Price IDFC First Bank Share Price IRCTC Share Price PNB Share Price Zomato Share Price Vodafone Idea Share Price Axis Bank Share Price JSW Steel Share Price Bandhan Bank Share Price SBI Share Price Tata Steel Share Price ONGC Share Price Ashok Leyland Share Price Paytm Share Price Subex Share Price DLF Share Price Reliance Share Price HDFC Bank Share Price Suzlon Share Price IOC Share Price HUL Share Price Asian Paints Share Price Bank Of Baroda Share Price ITC Share Price TCS Share Price HFCL Share Price Icici Bank Share Price Tata Chemicals Share Price CDSI Share Price MRF Share Price Tata Power Share Price Adani Green share price BPCL Share Price Vedanta Share Price Dmart Share Price Hindalco Share Price LIC Share Price SAIL Share Price Adani Port Share Price IEX Share Price Nalco Share Price L&T Share Price Adani Power Share Price BHEL Share Price Bajaj Finance Share Price Canara Bank Share Price Indusind Bank Share Price Gail Share Price Yes Bank Share Price Wipro Share Price Happiest Minds Share Price Coal India Share Price Maruti Share Price Reliance Power Share Price

 

INDIAN INDICES: Nifty 50 Share Price SENSEX Share Price Nifty Next 50 Share Price BSE100 Share Price Nifty Bank Share Price LRGCAP Share Price Nifty 100 Share Price MIDCAP Share Price Nifty 200 Share Price SMLCAP Share Price Nifty 500 Share Price BSE500 Share Price Nifty Midcap 50 Share Price ALLCAP Share Price NIFTY SMLCAP 50 Share Price BSE200 Share Price India VIX Share Price BSEIPO Share Price

ATTENTION INVESTORS:

“Investments in securities market are subject to market risk, read all the scheme related documents carefully before investing."

"Prevent Unauthorized transactions in your Trading/Demat Account. Update your mobile numbers/email IDs with your stock brokers/Depository Participant. Receive alerts/information of your transaction/all debit and other important transactions in your Trading/ Demat Account directly from Exchange/CDSL/NSDL at the end of the day. Issued in the interest of investors."

" We collect, retain, and use your contact information for legitimate business purposes only, to contact you and to provide you information & latest updates regarding our products & services."  

"KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary."

"We understand that certain investment advisors may be approaching members of the public including our clients, representing that they are our partners, or representing that their investment advice is based on our research. Please note that we have not engaged any third parties to render any investment advisory services on our behalf nor are we providing any stock recommendations/tips/research report/advisory. Persons making investments on the basis of such advice may lose all or a part of their investments along with the fee paid to such unscrupulous persons. Please be cautious about any phone call that you may receive from persons representing to be such investment advisors, or a part of research firm offering advice on securities. Do not make payments through e-mail links, WhatsApp or SMS. Please do not share your personal or financial information with any person without proper verification. Always trade through a registered broker."

Bajaj Financial Securities Limited is a subsidiary of Bajaj Finance Limited and is a corporate trading and clearing member of Bombay Stock Exchange Ltd. (BSE)  and National Stock Exchange of India Ltd. (NSEIL), and also a Depository participant with National Securities Depository Ltd (“NSDL”) and Central Depository Services Ltd. (“CDSL”).

Bajaj Financial Securities Limited is engaged in the business of Stock Broking and as a Depository Participant.Bajaj Financial Securities Limited does not provide any advisory services to its clients. Bajaj Financial Securities Limited may share updates from time to time (through various electronic communication modes) which are sourced from public domain and the same are NOT to be construed as any advice or recommendation from Bajaj Financial Securities Limited. Client is requested to independently evaluate and/or consult their professional advisors before arriving at any conclusion to make any investment. The decision to invest shall be the sole responsibility of the Client and shall not hold Bajaj Financial Securities Limited, its employees and associates responsible for any losses, damages of any type whatsoever.

The Stock Exchange, Mumbai is not in any manner answerable, responsible or liable to any person or persons for any acts of omission or commission, errors, mistakes and/or violation, actual or perceived, by us or our partners, agents, associates etc., of any of the Rules, Regulations, Bye-laws of the Stock Exchange, Mumbai, SEBI Act or any other laws in force from time to time.

The Stock Exchange, Mumbai is not answerable, responsible or liable for any information on this Website or for any services rendered by our employees, our servants, and us.

Personal Loan, Fixed Deposit, EMI Card are provided by Bajaj Finance Limited. Bajaj Financial Securities Limited is only a distributor. These are not exchange traded products and all disputes with respect to the distribution activity, would not have access to exchange investor redressal forum or Arbitration mechanism.

No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account.

Please Note:

  1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020

  2. Update your mobile number & email ID with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge.

  3. Pay 20% upfront margin of the transaction value to trade in cash market segment.

  4. Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued vide circular reference NSE/INSP/45191 dated July 31, 2020 and NSE/INSP/45534 and BSE vide notice no. 20200731-7 dated July 31, 2020 and 20200831-45 dated August 31, 2020 and other guidelines issued from time to time in this regard.

  5. Check your Securities /MF/ Bonds in the consolidated account statement issued by NSDL/CDSL every month.

Client Registration Documents (Rights & Obligations, Risk Disclosure Document, Do's & Don'ts) in Vernacular Language: BSE | NSE

If the client wishes to revoke /cancel the EDIS mandate placed by them, they can write on email to connect@bajajbroking.in  or call on the toll free number.

Advisory for Investors : NSE | BSE

ADVISORY - KYC COMPLIANCE

ADVISORY – PRECAUTIONS FOR CLIENTS DEALING IN OPTIONS

We also do pro-account trading in Equity & Derivatives Segment.

Filling complaints on SCORES - Easy & Quick

A.  Register on SCORES portal B. Mandatory details for filling complaints on SCORES (i) Name, PAN, Address, Mobile Number, E-mail ID C. Benefits: (i) Effective Communication (ii) Speedy redressal of the grievances.

SEBI Registration No.: INZ000218931 | BSE Cash/CDS/F&O (Member ID: 6706) | NSE Cash/F&O/CDS (Member ID: 90177) | DP registration No : IN-DP-418-2019 | CDSL DP No.: 12088600 | NSDL DP No. IN304300 | AMFI Registration No.: ARN – 163403 Research Analyst SEBI Registration No. INH000010043

Compliance officer:

Mr. Harinatha Reddy Muthumula, TEL:  1800 833 8888; Email:  compliance_sec@bajajfinserv.in for DP related to Compliance_dp@bajajfinserv.in , for any investor grievances write to investcare@bajajfinserv.in

DISCLAIMER

STANDARD DISCLAIMER

Investments in the securities market are subject to market risk, read all related documents carefully before investing.

Reg Office: Bajaj Auto Limited Complex, Mumbai –Pune Road Akurdi Pune 411035. Corporate Office: Bajaj Financial Securities Limited, 1st Floor, Mantri IT Park, Tower B, Unit No 9 & 10, Viman Nagar, Pune, Maharashtra 411014. SEBI Registration No.: INZ000218931 | BSE Cash/F&O/CDS (Member ID:6706) | NSE Cash/F&O/CDS (Member ID: 90177) | DP registration No: IN-DP-418-2019 | CDSL DP No.: 12088600 | NSDL DP No. IN304300 | AMFI Registration No.: ARN –163403. 

Website: https://www.bajajbroking.in/

RESEARCH DISCLAIMER

Broking services offered by Bajaj Financial Securities Limited | Registered Office: Bajaj Auto Limited Complex , Mumbai –Pune Road Akurdi Pune 411035 | Corporate Office: Bajaj Financial Securities Limited, 1st Floor, Mantri IT Park, Tower B, Unit No 9 & 10, Viman Nagar, Pune, Maharashtra 411014| CIN: U67120PN2010PLC136026| Research Analyst SEBI Registration No: INH000010043.

Details of Compliance Officer: Mr. Harinatha Reddy Muthumula (For Broking/DP/Research)|Email: compliance_sec@bajajfinserv.in/Compliance_dp@bajajfinserv.in |Contact No.: 020-4857 4486 |

Investment in the securities involves risks, investor should consult his own advisors/consultant to determine the merits and risks of investment.

DISCLOSURES

Disclosures under the provisions of SEBI (Research Analysts) Regulations 2014 (Regulations) 

Bajaj Financial Securities Limited ("Bajaj Broking" or "Research Entity") is regulated by the Securities and Exchange Board of India ("SEBI") and is licensed to carry on the business of broking, depository services and related activities. There were no instances of non-compliance by Bajaj Financial Securities Limited on any matter related to the capital markets, resulting in significant and material disciplinary action during the last three years. This research report has been prepared and distributed byBajaj Financial Securities Limited in the capacity of a Research Analyst as per Regulation 22(1) of SEBI (Research Analysts) Regulations 2014 having SEBI Registration No. INH000010043. 

DISCLAIMER

This e-mail/ short message service (SMS) may contain confidential, proprietary or legally privileged information. It should not be used by anyone who is not the original intended recipient. If you have erroneously received this message, please delete it immediately and notify the sender. The recipient acknowledges thatBajaj Financial Securities Limited or its holding and/or associated companies, as the case may be, are unable to exercise control or ensure or guarantee the integrity of/over the contents of the information contained in e-mail /SMS transmissions and further acknowledges that any views expressed in this message are those of the individual sender and no binding nature of the message shall be implied or assumed unless the sender does so expressly with due authority of Bajaj Financial Securities Limited. This message is not intended as an offer or publication or solicitation for distribution for subscription of or purchase or sale of any securities or financial instrument(s) to anyone in whose jurisdiction such subscription etc. requires prior local regulatory clearance or is contrary to the local laws of the land in any manner or as an official confirmation of any transaction. Before opening any attachments, please check them for viruses and defects. 

This service / information is strictly confidential and is being furnished to you solely for your information. This information should not be reproduced or redistributed or passed on directly or indirectly in any form to any other person or published, copied, in whole or in part, for any purpose unless otherwise expressly authorised. This service / information is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subjectBajaj Financial Securities Limited and affiliates/ group/holding companies to any registration or licensing requirements within such jurisdiction. The distribution of this document in certain jurisdictions may be restricted by law, and persons in whose possession this document comes, should inform themselves about and observe any such restrictions.  

The data would be provided to the clients on an "as is" and "where-is" basis, without any warranty. Bajaj Financial Securities Limited or its subsidiaries and associated companies shall not be liable for any delay or any other interruption which may occur in providing the data due to any reason including network (Internet) reasons or snags in the system, breakdown of the system or any other equipment, server breakdown, maintenance shutdown, breakdown of communication services or inability of the Bajaj Financial Securities Limited or its subsidiaries and associated companies to provide the data. In no event shall the Bajaj Financial Securities Limited or its holding and associated companies be liable for any damages, including without limitation direct or indirect, special, incidental, or consequential damages, losses or expenses arising in connection with the data provided by the Bajaj Financial Securities Limited or its holding and associated companies.

ADDITIONAL DISCLAIMER FOR U.S. PERSONS

Bajaj Financial Securities Limited is not a registered broker-dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state laws in the United States. In addition, Bajaj Financial Securities Limited is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by Bajaj Financial Securities Limited, including the products and services described herein are not available to or intended for U.S. persons. This email message does not constitute an offer or invitation to purchase or subscribe for any securities or solicitation of any investments or investment services and/or shall not be considered as an advertisement tool. "U.S. Persons" are generally defined as a natural person, residing in the United States or any entity organized or incorporated under the laws of the United States. US Citizens living abroad may also be deemed "US Persons" under certain rules.  

ADDITIONAL DISCLAIMER FOR CANADIAN PERSONS

Bajaj Financial Securities Limited is not a registered adviser or dealer under applicable Canadian securities laws nor has it obtained an exemption from the adviser and/or dealer registration requirements under such law. Accordingly, any brokerage and investment services provided by Bajaj Financial Securities Limited, including the products and services described herein are not available to or intended for Canadian persons.  

This mailer and its respective contents do not constitute an offer or invitation to purchase or subscribe for any securities or solicitation of any investments or investment services.  

DISCLAIMER FOR REPORT

DISCLOSURES UNDER THE PROVISIONS OF SEBI (RESEARCH ANALYSTS) REGULATIONS 2014 (REGULATIONS)

Bajaj Financial Securities Limited ("Bajaj Broking" or "Research Entity") is regulated by the Securities and Exchange Board of India ("SEBI") and is licensed to carry on the business of broking, depository services and related activities.  

This Report has been prepared by Bajaj Financial Securities Limited in the capacity of a Research Analyst having SEBI Registration No. INH000010043 and distributed as per SEBI (Research Analysts) Regulations 2014. This report does not constitute an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. The information contained herein is from publicly available data or other sources believed to be reliable. This report is provided for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Each recipient of this report should make such investigation as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including the merits and risks involved), and should consult his own advisors to determine the merits and risks of such investment. The investment discussed or views expressed may not be suitable for all investors.  

This information is strictly confidential and is being furnished to you solely for your information. This information should not be reproduced or redistributed or passed on directly or indirectly in any form to any other person or published, copied, in whole or in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject Bajaj Financial Securities Limited and associates / group companies to any registration or licensing requirements within such jurisdiction. The distribution of this report in certain jurisdictions may be restricted by law, and persons in whose possession this report comes, should observe, any such restrictions. The information given in this report is as of the date of this report and there can be no assurance that future results or events will be consistent with this information. This information is subject to change without any prior notice. Bajaj Financial Securities Limited reserves the right to make modifications and alterations to this statement as may be required from time to time. Bajaj Financial Securities Limited or any of its associates / group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Bajaj Financial Securities Limited is committed to providing independent and transparent recommendation to its clients. Neither Bajaj Financial Securities Limited nor any of its associates, group companies, directors, employees, agents or representatives shall be liable for any damages whether direct, indirect, special or consequential including loss of revenue or lost profits that may arise from or in connection with the use of the information. Our proprietary trading and investment businesses may make investment decisions that are inconsistent with the recommendations expressed herein. Past performance is not necessarily a guide to future performance .The disclosures of interest statements incorporated in this report are provided solely to enhance the transparency and should not be treated as endorsement of the views expressed in the report. The information provided in these reports remains, unless otherwise stated, the copyright of Bajaj Financial Securities Limited. All layout, design, original artwork, concepts and other Intellectual Properties, remains the property and copyright of Bajaj Financial Securities Limited and may not be used in any form or for any purpose whatsoever by any party without the express written permission of the copyright holders.  

We offer our research services to clients as well as our prospects. Though this report is disseminated to all the customers simultaneously, not all customers may receive this report at the same time. We will not treat recipients as customers by virtue of their receiving this report.  

Bajaj Financial Securities Limited and its associates, officer, directors, and employees, research analyst (including relatives) worldwide may: (a) from time to time, have long or short positions in, and buy or sell the securities thereof, of company(ies), mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the subject company/company(ies) discussed herein or act as advisor or lender/borrower to such company(ies) or have other potential/material conflict of interest with respect to any recommendation and related information and opinions at the time of publication of research report or at the time of public appearance. Bajaj Financial Securities Limited may have proprietary long/short position in the above-mentioned scrip(s) and therefore should be considered as interested. The views provided herein are general in nature and do not consider risk appetite or investment objective of any particular investor; readers are requested to take independent professional advice before investing. This should not be construed as invitation or solicitation to do business with Bajaj Financial Securities Limited.  

Bajaj Financial Securities Limited or its associates may have received compensation from the subject company in the past 12 months. Bajaj Financial Securities Limited or its associates may have managed or co-managed public offering of securities for the subject company in the past 12 months. Bajaj Financial Securities Limited or its associates may have received compensation for investment banking or merchant banking or brokerage services from the subject company in the past 12 months. Bajaj Financial Securities Limited or its associates may have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past 12 months. Bajaj Financial Securities Limited or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report. Research analyst or his/her relative or Bajaj Financial Securities Limited’s associates may have financial interest in the subject company. Bajaj Financial Securities Limited, its associates, research analyst and his/her relative may have other potential/material conflict of interest with respect to any recommendation and related information and opinions at the time of publication of research report or at the time of public appearance.  

Research analyst has served as an officer, director or employee of subject Company: No  

Bajaj Financial Securities Limited has financial interest in the subject companies: No  

Bajaj Financial Securities Limited’s Associates may have actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of research report.  

Research analyst or his/her relative has actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of research report: No  

Bajaj Financial Securities Limited has actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of research report: No  

Subject company may have been client during twelve months preceding the date of distribution of the research report.  

There were no instances of non-compliance by Bajaj Financial Securities Limited on any matter related to the capital markets, resulting in significant and material disciplinary action during the last three years. A graph of daily closing prices of the securities is also available at https://www.nseindia.com/

ANALYST CERTIFICATION

The analyst for this report certifies that all of the views expressed in this report accurately reflect his or her personal views about the subject company or companies and its or their securities, and no part of his or her compensation was, is or will be, directly or indirectly related to specific recommendations or views expressed in this report.  

RISK DISCLOSURE ON DERIVATIVES

  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to ₹ 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.

SEBI study dated January 25, 2023 on “Analysis of Profit and Loss of Individual Traders dealing in equity Futures and Options (F&O) Segment”, wherein Aggregate Level findings are based on annual Profit/Loss incurred by individual traders in equity F&O during FY 2021-22.

BROKERAGE DISCLAIMER

All leveraged intraday positions will be squared off on the same day. There is no restriction on the withdrawal of the unutilised margin amount. Brokerage will not exceed the SEBI prescribed limit. Visit : https://www.bajajbroking.in/pricing

MTF 

As subject to the provisions of SEBI Circular CIR/MRD/DP/54/2017 dated June 13, 2017, and the terms and conditions mentioned in the lights and obligations statement issued by the TM (if applicable).  

US INVESTING

International investment is not supervised by any regulatory body in India. Thus, any claim or dispute relating to such investment or enforcement of any agreement/contract /claim will not be under laws and regulations of the recognized stock exchanges and investor protection under Indian Securities Law. The account opening process will be carried out on Vested platform and Bajaj Financial Securities Limited will not have any role in it.  

MARKETSMITH / GOLDENPI / SOVEREIGN GOLD BONDS

Bajaj Financial Securities Limited is only distributor of this product. These are not exchange traded products and all disputes with respect to the distribution activity, would not have access to exchange investor redressal forum or Arbitration mechanism. Bajaj Financial Securities Limited is not a registered Investment Advisory. User discretion is required before investing. Client is requested to independently evaluate and/or consult their professional advisors before arriving at any conclusion to make any investment. The decision to invest shall be the sole responsibility of the Client and shall not hold Bajaj Financial Securities Limited, its employees and associates responsible for any losses, damages of any type whatsoever. 

IPO 

This should not be construed as soliciting investment. Investors’ discretion is required. Kindly consult your financial expert before investing. No need to issue cheques by investors while subscribing to IPO. Investments in securities markets are subject to market risks, read all the related documents carefully before investing.  

SCREENERS 

Screeners is not Exchange-approved products and any disputes related to the same will not be dealt on the Exchange platform. 

SECURITIES 

Securities quoted are exemplary and not recommendatory. 

IPV 

Account would be open after all procedure relating to IPV and client due diligence is completed. 

IMAGES 

The images used are only for representation purpose. Proper due diligence has been done for the images and the image is not of any artist. The same is captured from royalty free sites. 

DISCLOSURE TO CLIENTS REGARDING PAYOUT OF FUNDS

As per SEBI circular no. SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/84 dated June 08, 2023, Stockbrokers are required to upstream the entire client funds lying with them to the Clearing Corporation. Based on client’s request the funds’ release request must be placed with the Clearing Corporation. Based on the internal process and cut-off timelines of the Clearing Corporation the funds will be released to the Stock Broker. In view of this new process, as specified by the regulatory and the cut-off time of Clearing Corporation/Banks processing the funds, Bajaj Financial Securities Limited cannot commit the exact time for releasing funds payout to its client. Clients are requested to note that, Bajaj Financial Securities Limited will not be responsible for any inconvenience caused to clients due to delay in release of funds payout, including fines, delayed charges, defaults, etc.