## Quantitative Methods

#### Difference between Money Weighted Return and Time Weighted Return?

#### Money Weighted Return

Money-Weighted Return scales the percent return produced over time, and is influenced by the time of decisions to contribute or withdraw funds, as well as the decisions made by the portfolio manager of a fund. Money weighted return is also called as Internal Rate of Return.

#### Time Weighted Return (TWR)

Time Weighted Return is a method of calculating the rate of return for an investment during the particular period.It is otherwise called as Geometric Average Return.

#### Money Vs Time-Weighted Return