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Internal Rate of Return (IRR)

Also written: IRR

What is Internal Rate of Return in an Indian AIF?

Internal rate of return is the annualised discount rate at which a fund’s cash flows net to zero. It is the standard performance measure for close-ended funds because it accounts for the timing of drawdowns and distributions. Indian AIFs do not publish IRR in any standardised public form.

Related terms

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Definitions are explanatory, not legal advice. Where a definition rests on a regulation or circular it is named above; verify against the instrument before relying on it.