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Time-Weighted Rate of Return (TWRR)

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.

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

More terms

Depository

We look at what is a depository and what role they play in keeping markets work.

Money laundering

A method of moving money obtained illicitly through the financial system so it can be used legally.

Dirty price

The total price payable on the purchase of a gilt. It’s calculated as the clean price plus accrued interest.

Unicorn

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

Ponzi Scheme

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

Holding Period Return

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

ESG investing

ESG is a hot topic right now for investors. Understand what ESG investing is all about and how you can use it to diversify your portfolio.

Hedge Fund

Investment funds that are often associated with riskier and shorter-term trading strategies.

Arithmetic Mean

The sum of a set of numbers added together and then divided by the total amount of numbers in that set.

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