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

More terms

Alpha

The percentage by which an investor outperforms a relevant benchmark.

NYSE

The world's largest stock exchange. Wall St HQ.

Money weighted rate of return

Learn what Money Weighted Rate of Return or MWRR stands for in finance.

Holding Period Return

The amount of money generated by an asset during the time that it was held by an investor..

Retail Prices Index (RPI)

An index published each month by the Office for National Statistics, which measures the level of retail prices in the UK. Cash flows on all index-linked gilts are linked to the RPI.

Growth stocks

These are stocks in companies that are considered to be “growing”. These companies may be delivering new products and services, or entering new markets.

Fixed Income

An investment that provides a fixed rate of return, often over a specific set of time.

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.

Nominal amount

The face value of a gilt. It represents the amount that will be repaid to the holder at maturity and is also used to calculate the dividend or coupon payment.

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Internal Rate of Return (IRR)