ROI is an important measure of an investment's performance but it has some drawbacks. Andrew Beattie was part of the original editorial team at Investopedia and has spent twenty years writing on a ...

Time-weighted return (TWR) calculates an investment portfolio or fund’s performance while accounting for external cash flows. Investment funds usually have money flowing in or out at various times.

Excess return refers to the return on an investment that surpasses the return of a benchmark or a risk-free rate. It measures the performance of an investment in relation to its expected or required ...