Current location - Trademark Inquiry Complete Network - Tian Tian Fund - How to calculate rate of return
How to calculate rate of return

rate_f_eturn (rate of return) refers to the rate of return on investment, and its calculation method is: rate of return = income ÷ principal × 100%.

Generally expressed as an annual percentage, calculated based on the current market price, face value, coupon rate and time to maturity.

:Investment refers to the process in which countries, enterprises, and individuals sign agreements with each other for specific purposes to promote social development, achieve mutual benefit, and transfer funds.

It is also an economic behavior in which a specific economic entity invests a sufficient amount of funds or physical currency equivalents in a certain field within a certain period of time in order to obtain income or capital appreciation in the foreseeable future.

It can be divided into physical investment, capital investment and securities investment.

The former is to invest money into the enterprise and obtain certain profits through production and operation activities, while the latter is to use currency to purchase stocks and corporate bonds issued by the enterprise and indirectly participate in the profit distribution of the enterprise.

Investment is a form of incubation of innovative and entrepreneurial projects, and an economic activity that promotes the development of project industrialization complexes with capital.

Investment is a profit-seeking business activity in which owners of monetary income or any other wealth whose value can be measured in monetary terms sacrifice current consumption, purchase or purchase capital goods in order to realize value appreciation in the future.

The investment rate of return, also known as the investment rate of return, refers to the ratio of the total annual net income of the investment plan in a normal year to the total investment of the plan after it reaches a certain designed production capacity.

It is a static indicator for evaluating the profitability of an investment plan, indicating the annual net income created by the unit investment each year during the normal production years of the investment plan.

For plans with large changes in net income in each year during the operation period, the ratio of the average annual net income during the operation period to the total investment can be calculated.

Application indicators of investment return rate. Depending on the purpose of analysis, investment return rate can be divided into: 1. Total return on investment (ROI); 2. Net profit rate on capital (ROE).

The annualized rate of return is calculated by converting the current rate of return (daily rate of return, weekly rate of return, monthly rate of return) into the annual rate of return. It is a theoretical rate of return, not the real rate of return achieved.

Annualized rate of return is the annual rate of return converted from the net income of every 10,000 fund shares of a currency fund in the past seven days.

There are two methods of income carryover for money market funds: 1. "Daily dividends, carried forward on a monthly basis", which is equivalent to daily simple interest, and monthly compound interest; 2. "Daily dividends, carried forward on a daily basis", which is equivalent to

Compound interest every day.