CAGR is applicable when you invest one time and thats it…no additions or withdrawals in between. Or regular frequency withdrawals or additions.
XIRR is when additions as well as withdrawals are irregulars , at any point of time. Thats the reason, XIRR formula of excel need Dates as an input.
Now, when you are comparing XIRR with CAGR, just a normal comparison of higher and lower will not give you correct picture. You need to see you XIRR as in when and for how much period you invested and how much percentage of your portfolio as an amount was in the market or out of the market , meaning inside compounding machine or out of compounding machine. and this data will be different for each investor.
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