The annualized rate of return of 1 and 7 days is the annualized rate of return of the last 7 days. Every 7 days is different, and there will be fluctuations and changes. It can only be used as a reference standard, but it does not mean that it is the daily income after you buy it.

2. The annual rate of return is the ratio of the actual return of an investment for one year.

The annualized rate of return is the return of investment (commonly used by money funds) within a period of time (such as 7 days). Assuming that the year was at this level, the annual rate of return was converted. Because annualized rate of return is variable, annualized rate of return is not necessarily the same as annualized rate of return.

3. Under different ways of income carry-over, 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 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.

Extended data

One-time investment. Suppose an investor invests the principal C in a market (such as the stock market) at a certain moment, and its market value becomes V after a period of time T, then the investor's income (or loss, if V,

Here, the effective investment time d of one year varies from market to market. Such as bank deposits, bills, bonds, etc. Interest is generally calculated at 360 days per year (or 365 days in rare cases), that is, D=360 days. In publicly traded markets such as stocks and futures, the effective investment time is the number of trading days in a year, which is about 250 days after deducting holidays (52 weeks a year, 5 trading days a week, about 10 holidays a year: 52×5- 10=250), that is, D=250 days.

Used in real estate, general commerce, industry, etc. Because you can buy, sell or open positions every day, it is not affected by holidays, so the effective investment time is the natural days of the year, that is, D=365 days. Very special circumstances, such as an extra day in individual years caused by leap years, can naturally be ignored because of their small impact.

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