What is '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.

More terms

Annualised Rate of Return

The average annual return an investor sees over a set period of time.

Balance sheet

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

index-linked gilts

Gilts where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI). This is as opposed to a conventional gilt, where the dividends and principal repayments are fixed in nominal terms.

Withholding Tax

A tax deduction made at the source of the payment.

Rate of Return

Profit on an investment, expressed as a percentage of the investment.

Stock Exchange

A physical/digital place where stockbrokers and traders can buy and sell securities.

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.

Fixed Income

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

Value Investing

The art of buying shares which trade below their value, according to the analysis of the value investor.

Time-Weighted Rate of Return (TWRR)