The 7-day annualized rate of return is to average the income of a fund within seven days to get the average daily income for seven days, then multiply it by 365 to get the total income for one year, and then divide it by the principal.
How to calculate annualized rate of return and annual interest rate?
Seven-day annualized rate of return = seven-day average daily income *365* 100%/ principal.
Seven-day annualized rate of return refers to the average income level and annualized interest rate of an investment or wealth management product in the past seven days; The annual interest rate refers to the average interest rate of investment or wealth management products for a whole year. The annualized rate of return is a variable value, which can only predict the annual income level and can only be used as a reference budget income. The annual interest rate is a fixed value, through which the annual income can be clearly calculated, but there is no conversion relationship between the two, but both represent the annualized rate of return.
The characteristics of annual interest rate are: how much to bid and strong certainty. Look at the annual interest rate The principal times the annual interest rate is the annual interest.
The characteristic of the annual rate of return is that the number of bids is calculated, and you may not get that much. It is the interest rate converted from daily income. How much depends on the daily income.
Related question and answer: What is the annualized interest of 2.87%10000 * 2.87%/12 = 23.92 yuan on the 7th? Seven-day annualized rate of return is the annual rate of return converted from the net income per 10,000 fund shares in the past seven days, which actually turns it into an annual interest rate.
The calculation formula of annualized rate of return: annualized rate of return = (investment income/principal)/(investment days /365)× 100%. Suppose the annualized rate of return for seven days is 5%, and the annualized rate of return for eleven thousand is: 10000×5%=500 yuan; Daily income 500/365= 1.37 yuan.
Seven-day annualized rate of return is the annualized rate of return calculated according to the income of wealth management products in the last seven days. Therefore, the seven-day annualized income will change at any time, and the annualized rate of return of many products changes almost every day. For example, the value of a wealth management product before the first day of trading is A, the value after the seventh day of trading is B, and the expenses for these seven days are C (some wealth management products have expenses, while others have no other expenses). The one-year interest calculated by seven-day annualized rate of return is the formula: seven-day annualized rate of return =(B-A-C)÷A÷7×365× 100%. Daily interest = principal * 7-day annualized income ÷365. Although it is a little different from the actual situation, it has little impact. Generally speaking, when choosing a money fund, the first thing you need to pay attention to is the seven-day annualized income, which can show the performance of the whole money fund in one year.
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. The annualized rate of return refers to the rate of return obtained by investing for one year. Annual rate of return = [(investment income/principal)/investment days ]*365× 100% annualized rate of return = principal× annualized rate of return = principal× investment days /365-year rate of return, which is the ratio of the actual return of an investment in one year. The annualized rate of return is the return of investment (commonly used by money funds) within a period of time (such as 7 days). Assuming that the year was at this level, the annual rate of return was converted. Because annualized rate of return is variable, annualized rate of return is not necessarily the same as annualized rate of return.