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The meaning of 7-day annualized rate of return

Seven-day annualized rate of return refers to the annualized data of the average income level of the money fund within seven days.

if the annualized rate of return of X Monetary Fund is 4% on the same day and the income of the next year remains unchanged at 4%, then the income of 4% of the investment amount can be obtained after one year. Usually, the yield of money market funds has two indicators: one is the annualized rate of return on the 7 th, and the other is the income per 1, fund units.

As a short-term indicator, the 7-day annualized rate of return is only the information of the fund's income level in the past 7 days, and does not represent the future income level. What investors really care about is the second index, that is, the higher the income per 1 thousand fund units, the higher the actual income investors get.

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