1492 terms

Glossary

Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.

Showing 2 terms

Absolute return

Market basics

Also called: Point-to-point return, Total gain

The total gain against the amount invested, ignoring how long the money was invested for.

In plain terms

Accurate and nearly useless alone. Doubling is 100% whether it took two years or twenty, so it cannot be compared with any annual figure.

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XIRR

Market basics

The annualised return on cash flows that went in at different times.

In plain terms

The only honest measure of a SIP. Your app’s absolute return is not comparable to an index’s annual return.

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