Annualized income = principal × annualized rate of return. Actual income = principal × annualized rate of return × investment days /365.
The annualized rate of return is the rate of return obtained when the investment period is one year, which is to convert the current rate of return into one year, not the actual rate of return for one year. This period can be 1 day, 1 week or 1 month. The annualized rate of return is variable, so the annualized rate of return is not necessarily the same as the annualized rate of return.
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For investors, when contacting wealth management products, they should not only know the meaning of the word annualized rate of return, but also know another very similar word annualized rate of return. The annual rate of return is the ratio of the actual income from investing in a wealth management product for one year. This is the real rate of return. The annualized rate of return is calculated according to the current rate of return for one year. Relatively speaking, annualized rate of return is a theoretical rate of return.
Besides knowing the difference between annualized rate of return and annualized rate of return, we also need to know what is the seven-day annualized rate of return. For online wealth management products, the seven-day annualized rate of return is also a word that is often encountered. Seven-day annualized rate of return refers to the average income level in the last seven days and the annualized rate of return.
Seven-day annualized rate of return can only be used as a reference for short-term indicators and cannot represent actual income. But the seven-day annualized rate of return is also one of the important indicators reflecting the rate of return of money market funds.
The higher the annualized rate of return of wealth management products, the more income will be obtained. Therefore, products with high annualized rate of return are often more popular with investors.
Baidu encyclopedia-annualized rate of return