What are MWRR and TWRR？

MWRR (Money-Weighted Rate of Return) and TWRR (Time-Weighted Rate of Return) are two methods used to calculate investment performance.

MWRR is a measure of the rate of return on an investment taking into account the timing and amount of cash flows. It is also known as the Internal Rate of Return (IRR). MWRR takes into account the timing and size of cash flows, including deposits and withdrawals, to calculate the overall return on the investment.

TWRR, on the other hand, is a measure of the rate of return on an investment that does not take into account the timing and amount of cash flows. It is also known as the Geometric Mean Return. TWRR calculates the average rate of return over a specific period of time, assuming that all cash flows are reinvested at the same rate of return.

In general, MWRR is more appropriate for individual investors who make regular contributions or withdrawals from their investments, while TWRR is more appropriate for institutional investors who manage large portfolios and have fewer cash flows.