What is 'Internal Rate of Return (IRR)'? Definition & meaning

More terms

Money laundering

A method of moving money obtained illicitly through the financial system so it can be used legally.

Maturity date

The date on which a gilt is redeemed and the gilt holder receives the repayment of the nominal amount and final dividend or coupon payment.

Investment Trust

A company that pools money together from multiple investors and then invests it.

Internal Rate of Return (IRR)

A means of calculating the potential future return on an investment.

index-linked gilts

Gilts where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI). This is as opposed to a conventional gilt, where the dividends and principal repayments are fixed in nominal terms.

Securities

Bonds and stocks.

Venture Capital Trust (VCT)

A listed company run by a fund manager, investing mainly in private companies.e.

Net asset value

Mutual funds and investment trusts are priced on their net asset value (NAV).

Limit order

Learn what a limit order is and how to use it to make the most of your portfolio.

Internal Rate of Return (IRR)

More terms

Money laundering

Maturity date

Investment Trust

Internal Rate of Return (IRR)

index-linked gilts

Securities

Venture Capital Trust (VCT)

Net asset value

Limit order

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