FinAtoZ Blog

Entries for date "October 2022"

TWRR- An unbiased approach for calculating the investment returns


Time-weighted rate of return (TWRR) considers only the investment’s market value change over a specific time period. The timing of cash flows determines where periods begin and end, and an investor’s decision to contribute or withdraw from the portfolio does not affect the return. The TWRR isolates the portfolio’s performance and allows for comparisons across portfolios, making it a better reflection of the decisions made by the portfolio manager over the period.

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