Definitions for **"Holding period return"**

Percent rise or fall in the value of a portfolio since inception or since the last trade. The holding period return is the Time Weighted Returns (TWR). See also Time Weighted Return. TaraFolio(tm) disregards any cash activities unrelated to securities transactions. For example, any cash additions into the account are subtracted and withdrawals are added to calculate this return. If you are managing funds pooled from more than one person, this is the only way a manager can report his or her fund's performance. So, this measure of returns is important to professional fund managers.

This is an easy to compute (but often misleading) method to determine the return on an investment. Add together any capital gains (deducting capital losses) and any income less any expenses and divide by the original investment. The short coming of this method is that while a 60% return is fine for a short holding period, it is not very attractive for a 10 year holding period.

(2) This is the simplest profitability measure for existing property investment. It is the total of all income minus the total of all costs ignoring the timing. It is shown as an amount and a %.