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.
Extended data:
Seven-day annualized rate of return:
Under different income carry-over methods, the calculation formula of seven-day annualized rate of return should also be different. At present, there are two ways to carry forward the income of money market funds. One is to pay dividends on a daily basis and carry them forward on a monthly basis, which is equivalent to daily simple interest and monthly compound interest; The other is a daily dividend, which is carried forward on a daily basis, which is equivalent to daily compound interest.
The formula for simple interest is (∑ ri/7) × 365/1000×100%, and the formula for compound interest is: (∏ (1+ri/10000)-/kloc-0.
It can be seen that the 7-day annualized rate of return is calculated according to the 7-day income, and the 30-day annualized rate of return is calculated according to the latest 1 month income.
The establishment of this index is mainly to provide investors with more intuitive data for investors to refer to when comparing the income of money funds with other investment products. In this indicator, the rate of return in the last seven days is determined by seven variables, so the same rate of return in the last seven days does not mean that the net income per ten thousand fund shares in the seven days used for calculation is exactly the same.
Baidu encyclopedia-annualized rate of return