Money Weighted Rate of Return and Time Weighted Rate of Return vs
I am over conscientious; I tend to overvalue others' opinions of myself today. Sometimes, reading a good post on mutual fund investment may create good image of what it is really going on.
They said:
Time weighted rate of return measures the compound rate of return over a given period for one unit of money. Money-weighted rate of return, by contrast, measures the compound growth rate in the value of all funds invested in the account over the evaluation period. MWR represents the average growth rate of all money invested, while TWR represents the growth of a single unit invested. MWR is sensitive to the timing of external cash flows, whereas TWR is not affected. Time-weighted return is .. read the rest part.
They said:
This post comes from Mike of Quest for Four Pillars, "another Canadian Financial Blog," that traces its namesake to none other than the Four Pillars of Investing by William Bernstein. In the blogosphere there seems to be a lot of excitement about peer-to-peer lending which is the ability to lend money to other individuals through companies such as Prosper and Lending Club. While I can understand how some investors will always be interested in a new investment product I don't really ..[more].
The synthesis of the idea of mutual fund investment dominated early news:
The Blackstone Group (NYSE: BX) has fallen sharply from its peak of $38/share all the way down to its current level of around $15/share over the last year. Analysts are now saying that the $100 billion private equity fund could earn less than half of what was expected during the fourth quarter thanks to increasing credit market turmoil. In fact, leveraged buyout plunged more than two-things in the second half of 2007 compared to the first half of the year. Much of this is due to banks ..[more].
Cheers, guys!
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