What is the 'Time-Weighted Rate of Return (TWRR)'? Definition & meaning

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

More terms

Over-The-Counter (OTC)

A security that is sold outside of an exchange.

Hypothesis Testing

A mathematical test used to determine whether a claim is true or false.

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.

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.

Balance sheet

A summary of a company's finances, including its assets, liabilities and shareholder equity.

Know Your Customer (KYC)

A legal requirement for financial firms to understand exactly who their customers are. Used to prevent money laundering and terrorist financing.

Xetra

A trading venue operated by the Frankfurt Stock Exchange.

Inflation

The increase in the prices of goods and services over time, and the process by which money loses its value.

Geometric Mean Return

A way of calculating compound returns on an investment or savings over a set period of time.

Time-Weighted Rate of Return (TWRR)