Time-weighted return (TWR) calculates an investment portfolio or fund’s performance while accounting for external cash flows. Investment funds usually have money flowing in or out at various times.

Caroline Banton has 6+ years of experience as a writer of business and finance articles. She also writes biographies for Story Terrace. Gordon Scott has been an active investor and technical analyst ...

When it comes to evaluating investment performance, investors and financial professionals rely on various metrics to gain insights into the effectiveness of their strategies. One such crucial measure ...

Being under the illusion that you are earning a high rate of return when your true return is sub-par often leads to overconfidence, which is a performance killer. Money-weighted returns (also called ...

Discounted cash flow (DCF) is a valuation method used to estimate the attractiveness of an investment opportunity. Learn how it is calculated and when to use it.

What Is Time-Weighted Return? Time-weighted return (TWR) is a method of measuring investment performance that accounts for the impact of cash flows and the timing of those flows. This method is ...