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.

Ponzi Scheme

A form of fraud designed to lure new investors, and pays the earlier backers by using the new investors' money.

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)

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

Unit Trusts

A collective investment scheme the investors pay money into in exchange for units. The money is invested in a diversified portfolio of assets.

Holding Period Return

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

UK Treasury bill

A debt instrument issued by the UK government with a maturity of less than one year.

Junk Bond

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

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.

Internal Rate of Return (IRR)

More terms

Real Estate Investment Trust (REIT)

Ponzi Scheme

Packaged Retail and Insurance-based Investment Product (PRIIP)

Internal Rate of Return (IRR)

Unit Trusts

Holding Period Return

UK Treasury bill

Junk Bond

Coupon

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