Annualized rate of return The annual rate of return converted from the net income per 10,000 fund shares of the Monetary Fund in the past seven days. There are two ways to carry forward the income of money market funds: daily dividends are carried forward on a monthly basis, which is equivalent to daily simple interest and monthly compound interest; Daily dividends are carried forward daily, which is equivalent to daily compound interest.
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. 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 daily dividend, which is carried forward on a daily basis, equivalent to daily compound interest, in which the formula for calculating simple interest is: (∑ ri/7) × 365/10000 ×100%, and the formula for calculating compound interest is: (∏ (1+ri/650).
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 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.