The average annual rate of return of Chinese funds, the average annual rate of return of stock funds is about 18% to 20%, and the average annual rate of return of bond funds is about 7% to 10%.

1. Fund annualized rate of return

Fund annualized rate of return = (investment income/principal)/(number of investment days/365) × 100%

Fund actual income = principal × annualized rate of return × number of investment days/365, which is the ratio of the actual income of an investment in one year.

For example, if you purchase a fund product worth RMB 3 million with a term of 6 months, you will receive an income of RMB 180,000. Assuming that the rate of return is the same regardless of the length of the term, it can be deduced that the annualized rate of return of this fund product is 12%. . But in fact, the fund stipulates that the purchase amount of this fund product is greater than or equal to 3 million, and the one-year annual rate of return is 15%. That is, the actual annual rate of return available to investors is 15%, which is not the same as the annualized rate of return.

In fact, the average annualized rate of return of a fund’s fixed investment is unknown and cannot be calculated! It's affected by so many factors. Once it becomes history, it can be calculated. The best in the world achieve an average annualized rate of return of 25%; the best in Asia achieve 20%, and generally can achieve 7 to 10%.

2. Stock funds are also called stock funds

It refers to funds that invest in the stock market. There are many types of securities funds. In addition to stock funds, my country also has bond funds, stock-bond mixed funds, money market funds, etc.

The investment strategies include value, growth and balance.

3. Bond Funds

Bond funds refer to funds that mainly invest in fixed-income financial instruments such as government bonds and financial bonds, because the returns on the products they invest in are relatively stable. , also known as "fixed income funds." Depending on the proportion of investment in stocks, bond funds can be divided into pure bond funds and partial bond funds. As of the end of August 2019, China's bond funds had grown by nearly 100 billion yuan.

The annualized rate of return of a fund is the income from investment over a period of time. Assuming that it remains at this level for a year, it is the converted annual rate of return. Because the annualized rate of return changes, the annual rate of return is not necessarily the same as the annualized rate of return.