A 1, 7-day annualized rate of return refers to the average rate of return of the money fund in the past 7 days, and then annualized data; Ten thousand income refers to the income of 6,543,800 yuan invested in the Monetary Fund on that day. There is a formula between them: seven-day annualized rate of return = (the sum of ten thousand returns in the past seven days ÷7)×365÷ 10000. However, it should be noted that we exclude the compound interest factor here, so the seven-day annualized rate of return obtained by the formula is slightly different from the actual published seven-day annualized rate of return.

Answer 2. The 7-day annualized rate of 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 10,000 returns in the long run. Therefore, when people compare the income of money funds, they usually compare the annualized rate of return of seven days. Ten thousand copies of income represent the income of the day, while the seven-day annualized rate of return represents the historical income, so ten thousand copies of income are generally ahead of the seven-day annualized rate of return, and the trend of seven-day annualized rate of return can be judged from the trend of ten thousand copies of income.

Answer 3: The annualized rate of return is only a short-term reference indicator and does not represent our actual annual income. So the two figures you mentioned are not comparable. In addition, the increase of a debt base in three years is 15%, which does not mean that the fund is good. Because there will be ups and downs during these three years, some foundations will have ups and downs, so if you only hold 1 year, you may still lose money.

Extended data:

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

Annualized rate of return The annual rate of return converted from the net income per 10,000 fund shares of the Monetary Fund in the past seven days. There are two ways to carry forward money market funds: 1. "Daily dividends are carried forward on a monthly basis", which is equivalent to daily simple interest and monthly compound interest; 2. "Daily dividends are carried forward daily", which is equivalent to daily compound interest. The simple interest calculation formula is: (∑Ri/7)×365/ 10000 × 100%.

The formula of compound interest is: (∑Ri/ 10000) ×365/7× 100%, where Ri is the calendar day of every ten thousand income (I = 1, 2...7) in the recent I day.

References:

Baidu encyclopedia: annual rate of return