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

More terms

Yield

Income from an investment as a percentage of its current price.

Technical Analysis

Examining price movements of shares and other assets, and trying to predict how they will move in the future.

Investment Trust

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

Forward pricing

Mutual funds are traded on a forward pricing basis, meaning the price you see will be different to the price you may trade at.

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.

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.

OEIC

Unique to the UK, these funds pool together money to invest from multiple investors.

S&P 500

Find out what is the definition of the S&P 500 index.

Income statement

A summary of a company's income and expenses over a set period of time.

Internal Rate of Return (IRR)