First, what does this mean?
1, 7-day annualized rate of return means that the monetary fund reflects the average income level according to the income situation in the last 7 days. The annualized data is the 7-day annualized rate of return, and the calculation process is as follows: 7-day income = rate of return /365 days ×7× principal. If the seven-day annualized rate of return is 2.3% and the investment principal is 1 10,000 yuan, the seven-day income is about 4.4 1 yuan.
2.7 annualized rate of return can only be used as a short-term indicator, which can represent the recent income level, but it cannot fully represent the actual annual income of the fund.
Second, what is seven-day annualization?
Seven-day annualization refers to the data obtained after the average income of the subject matter has been annualized for the past seven days, and the seven-day annualization rate = principal * interest rate *7/365. At present, the income shown by money funds and some net worth wealth management is the seven-day annualized income. If the seven-day annualized rate of return of a monetary fund is 1.83% and the principal is 20,000 yuan, it can be calculated that the seven-day annualized rate of return is 20,000 *1.83% * 7/365 = 6.954 yuan and the daily rate of return is 6.954/7=0.99 yuan.
Rate of return refers to the rate of return on investment, generally expressed as an annual percentage, and calculated according to the current market price, face value, coupon rate and the time from the maturity date. For a company, the rate of return refers to the percentage of net profit to the average capital used.
Rate of return is a useful index to evaluate rate of return productivity. It tries to answer: should society and individuals invest resources in the rate of return? In other words, the rate of return can not only be used as a standard to evaluate the rate of return on resources invested in a country or region, but also provide information on the efficiency of resource allocation and encourage individuals and governments to invest in the rate of return. For example, by comparing the rate of return with the rate of return on physical capital investment, we can judge the rate of return on investment in a country or region; Another example is the higher rate of return found in most studies, which can encourage individuals and governments to invest more resources in the rate of return.