1, annualized rate of return is to convert the current rate of return (daily rate of return, weekly rate of return and monthly rate of return) into annual rate of return. It is the theoretical rate of return, not the actual rate of return. For example, the daily interest rate is one ten thousandth, and the annualized rate of return is 3.65% (365 days in a normal year). Because annualized rate of return is variable, annualized rate of return is not necessarily the same as annualized rate of return. For long-term wealth management products, the time of subscription period and liquidation period can be ignored, but for short-term wealth management products within 7 days or 1 month, this time has a great impact. For real estate, ordinary industrial and commercial enterprises can sell or start business every day, regardless of holidays. The effective investment time is the natural days of one year, that is, d=365 days. The extra day in individual years caused by very special circumstances such as leap year can naturally be ignored because their influence is very small.

2. The average rate of return, also known as the average rate of return, refers to the annual average net income of investment projects. Net profit, also known as net profit, refers to the retained profit of an enterprise after paying income tax according to regulations. It is also often called after-tax profit or net income. The calculation formula of net profit is: net profit = total profit ×( 1- income tax rate).

The average rate of return is the ratio of net profit to the average investment of the project. It is the average income of the project after deducting income tax and depreciation divided by the average book investment during the whole project period.

3. Different applicable products

The annual rate of return is usually used for fixed-income products such as bank deposits. For example, an investor bought a fixed-income processing product with a capital preservation of 1 10,000 yuan, an investment period of 1 year and an annual yield of 3%. Then the actual income that investors can get after maturity is: income = principal × annual rate of return/12= 10000*3%=300 yuan. Regardless of the final investment effect of wealth management products, investors can get the actual income of 300 yuan after the holding period expires. The annualized rate of return is usually used for floating income products, such as the 7-day annualized rate of return common in money funds. Investors buy floating income products, the investment principal is 10000 yuan, and the investment period is one year. The expected annualized rate of return of products is 3%. Therefore, if the rate of return of products is kept at 3% in the future, investors can only get 300 yuan's income, but the rate of return of floating income products usually goes up and down.