Monetary Fund Income: Which is more important, the 7-day annualized rate of return or the 10,000-share income?

Most investors buy money funds because of their low risk, and the expected annualized expected return is usually higher than that of bank deposits, which is a good place for idle funds to manage money. There are two major indicators about the expected annualized expected return of the money fund, one is the expected annualized expected return of seven days, and the other is the expected annualized expected return of ten thousand copies. So what do they mean, what is the relationship, and who is more important?

The seven-day historical expected annualized expected rate of return refers to the average expected annualized expected rate of return of the money fund in the past seven days, and then the data obtained through historical annualization. Ten thousand copies of expected annualized expected income refers to the expected annualized expected income of 6,543,800 yuan invested in the Monetary Fund on the same day. There is a formula between them: seven-day historical expected annualized expected return = (the sum of ten thousand expected annualized expected returns in the past seven days is 7)365 10000. However, it should be noted that we exclude the compound interest factor here, so the annualized expected rate of return of the seven-day historical expectation obtained by the formula is slightly different from the annualized expected rate of return of the seven-day historical expectation actually announced.

For example, if we put 10000 yuan in the balance treasure, the historical average annualized expected return for seven days on June 8 is 4.044%, and the annualized expected return for ten thousand copies is 1.0826, then we earned 1.08 yuan on June 8. The expected annualized expected income actually obtained every day only needs to look at the expected annualized expected income of 10 thousand, which has nothing to do with the expected annualized expected income of the seven-day history.

Can we just look at the 10,000-year expected annualized expected return instead of the seven-day historical expected annualized expected return?

Some investors have asked, since the money we earn every day is 10 thousand expected annualized expected income, can we just look at the 10 thousand expected annualized expected income instead of the seven-day historical expected annualized expected income? In fact, this is not desirable. For the money fund, the expected annualized expected return of 10,000 shares changes every day, and sometimes fluctuates greatly. Investors will have two questions: 1 Is the expected annualized expected return of the money fund rising or falling? 2. Compared with other wealth management products, is the expected annualized expected return of the money fund high or low?

The seven-day historical expected annualized expected return takes into account this short-term fluctuation factor, and is also conducive to making a comparison with other products, so it is more valuable than ten thousand expected annualized expected returns in the long run. Therefore, when we compare the expected annualized expected return of the money fund, we will generally compare the expected annualized expected return of the seven-day history.

Why do the seven-day historical expected annualized expected return and the ten thousand-year expected annualized expected return sometimes have opposite trends?

Generally speaking, if the expected annualized income of 10,000 yuan rises, the expected annualized income of seven-day history will also rise, but often the trend of the expected annualized income of seven-day history and the expected annualized income of 10,000 yuan are opposite, that is, one rises and one falls, so what is the reason?

It's actually quite simple. For example, the following is the trend of 10,000 expected annualized expected returns between June 1 and June 8 and the 7-day historical expected annualized expected returns. We can see that on June 8th, its ten thousand expected annualized expected returns rose, but the seven-day historical expected annualized expected returns fell. The 7-day historical expected annualized expected return on June 7th corresponds to the 1 0000 expected annualized expected return from June 7th, and the 7-day historical expected annualized expected return on June 8th corresponds to the 10000 expected annualized expected return from June 2nd to June 8th. Although the expected annualized expected return on June 8th rose to 1.60 14, it was still far lower than that on June 8th 1 3.7293, so the expected annualized expected return on June 8th will increase by 1 10,000, but the historical expected annualized expected return on July 7th will decrease.

The relationship between the 7-day historical expected annualized expected return of the monetary fund and the 10,000-year expected annualized expected return.

We can judge the trend of the seven-day historical expected annualized expected return from the trend of the expected annualized expected return in ten thousand years.

Ten thousand expected annualized expected returns represent the expected annualized expected returns of the day, and the seven-day historical expected annualized expected returns represent the historical expected annualized expected returns. Therefore, ten thousand expected annualized expected returns are generally ahead of the seven-day historical expected annualized expected returns, and the trend of the seven-day historical expected annualized expected returns can be judged from the trend of ten thousand expected returns.

The above picture shows the trend of ten thousand expected annualized expected returns of Yu 'ebao in the last seven days (June 2-June 8). We can see that the annualized expected return of 10,000 copies is in a downward trend as a whole, and it is expected that the annualized expected return of 10,000 copies on June 9 will still be at a relatively low level, so the annualized expected return of the seven-day historical expectation is likely to decline. In fact, as long as the expected annualized income of Yu 'ebao on June 9th is lower than that of 1.0894 on June 2nd, its seven-day historical expected annualized expected income will definitely decline. On the contrary, if the annualized expected return of ten thousand copies is in a downward trend in recent days as a whole, then the annualized expected return of the seven-day historical expectation will be even lower.