2.7 annualized rate of return is the average income level of the monetary fund in the last 7 days, and the data obtained after annualization. Of course, the daily income of the money fund will constantly change with the operation of the fund manager and the fluctuation of the money market interest rate, so it is unlikely that the fund income will remain unchanged for one year in actual operation.
3. For example, the annualized rate of return of a monetary fund is 2% on that day, and assuming that the income of the monetary fund in the next year can remain unchanged at the level of the previous seven days, then you can get the overall income of 2% if you hold it for one year.
Extended data
The annualized rate of return of 1 and 7 days can only be regarded as a short-term indicator, which can roughly refer to the recent income level, but it cannot fully represent the actual annual income of this fund.
2. The establishment of this indicator is mainly to provide investors with more intuitive data for investors to refer to when comparing the income of the Monetary Fund with other investment products. In this indicator, the rate of return in the last seven days is determined by seven variables, so the same income in the last seven days does not mean that the net income per 10,000 fund shares in the seven times used for calculation is exactly the same.
3. At present, the average annualized rate of return of domestic money funds is about 5%, while the benchmark interest rate of one-year time deposit is 1.50%. As a cash management tool with excellent liquidity and safety, money fund is still an ideal substitute for short-term savings.
(Source: 7-day annualized rate of return-Baidu Encyclopedia)
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