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

More terms

Real Estate Investment Trust (REIT)

An investment trust specialised in investing in commercial property such as parking garages or GP offices.

Global Investment Performance Standards (GIPS)

A set of standards which investors use to present their investment results.

Unicorn

A startup valued at over £1 billion. They are rare, hence the name.

Annualised Rate of Return

The average annual return an investor sees over a set period of time.

Alpha

The percentage by which an investor outperforms a relevant benchmark.

American Depository Receipts (ADRs)

Tradeable assets that let Americans invest in overseas stocks using US laws and dollars.

United States Dollar (USD)

The famous greenback our friends in the US use as currency.

Coupon

Also called a dividend, this is the fixed annual interest paid to gilt holders. It’s usually paid in two equal, semi-annual instalments and expressed as a percentage of the nominal value of the gilt.

Packaged Retail and Insurance-based Investment Product (PRIIP)

An investment where, regardless of its legal form, the amount repayable to the retail investor is subject to fluctuations.

Internal Rate of Return (IRR)