n NISM Certifications
X NISM Series X
Medium

Mr. Sumeet invested ₹5,000 in a mutual fund on 1 January 2020 and redeemed it for ₹12,000 on 31 December 2021. What is the CAGR?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. 54.90%

    Correct answer

  2. B

    69.75%

  3. C

    70.80%

  4. D

    125%

Why this is the answer

CAGR is calculated using the formula {(Ending Value / Beginning Value)^(1/Number of Years) − 1}, which gives {(12,000 / 5,000)^(1/2) − 1} = 54.90%, since the investment period is approximately two years.

Test yourself for real

Take a full NISM Series X mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.