Returns & Performance
Extended Internal Rate of Return
Definition
What is Extended Internal Rate of Return?
An internal rate of returnThe discount rate that makes a project's net present value equal to zero. calculation that uses actual dates for irregular cash flows, often called XIRR.
Example in practice
How This Looks in Practice
The investorA person or organisation that commits capital with the expectation of a financial return. calculates XIRR for deposits made on different dates.
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Related Terms
Returns & Performance
Total Return
The complete investment result from price changes plus income, assuming distributions are included.
Returns & PerformanceCapital Gain
The profit made when an asset or fund unit is sold for more than its cost.
Returns & PerformanceDividend
A payment made from a company's profits to eligible shareholders.
Costs & FeesManagement Fee
The recurring fee paid from fund assets to the fund manager for managing the portfolio.