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

More terms

Time-Weighted Rate of Return (TWRR)

A return calculated over the time period invested, that excludes extraneous elements, such as deposits to and withdrawals from the investment accounted.

LSE

London Stock Exchange, which was founded in 1571 and now has a market cap of almost $5 trillion.

Diversification

An investment strategy in which money is put into a variety assets.

Global Investment Performance Standards (GIPS)

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

Annualised Rate of Return

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

Account balance

The amount of money a user has stored in a financial repository.

Year to Date (YTD)

A period of time that starts with the first day of the current calendar year and ends with today.

Custodian bank

Learn what a custodian bank is.

Junk Bond

A form of debt investment that carries higher risk because of the likelihood that the issuer will default.

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Internal Rate of Return (IRR)