Under different income carry-over methods, the calculation formula of seven-day annualized rate of return should also be different.

There are two ways to carry forward money market funds:

One is "monthly dividend, carried forward on a monthly basis", and the other is "daily dividend, carried forward on a daily basis". Whether it is carried forward on a daily basis or on a monthly basis, it is equivalent to compound interest. The formula of compound interest is: {[π (1+ri/10000)] (365/7)-1}×100% π means continuous multiplication i= 1. . . seven

Where Ri is the earnings per 10,000 shares in the last I calendar days (I = 1, 2).

The regulatory authorities in some countries have strict formulas for calculating the seven-day annualized interest rate: if the value of a monetary fund before the first day of trading is A, the value after the seventh day of trading is B, and the fee for these seven days is C (sometimes, for example, Yu 'ebao, according to the situation of 20 14/3/ 15, C=0). The calculation formula of annualized income for seven days is (B-A-C)/A/7*365* 100%.

For example, the value of a money fund before opening on March 7th is 100 yuan (that is, A = 100) and after closing on March 7th is10/yuan (that is, b =10/). Then the seven-day annualized interest rate of this fund is (101-kloc-0/00-0)/100/7 * 365 *100%.

Extended data:

The seven-day annualized rate of return can only be regarded as a short-term indicator, through which we can roughly refer to the recent income level, but it can not fully represent the actual annual income of this fund. The average annualized rate of return of domestic money funds is about 5%, while the benchmark interest rate of one-year time deposits is 1.50%.

As a cash management tool with excellent liquidity and safety, money fund is still an ideal substitute for short-term savings. The establishment of this index is mainly to provide investors with more intuitive data for investors to refer to when comparing the income of money funds with other investment products.

In this indicator, the rate of return in the last seven days is determined by seven variables, so the same income in the last seven days does not mean that the net income per 10,000 fund shares in the seven times used for calculation is exactly the same.

Baidu Encyclopedia -7-day annualized rate of return