The fund's seven-day annualized rate of return is the annual actual interest rate. Divide the seven-day annualized rate of return by 7 and multiply it by 365, which is the annual rate of return.

For example, the seven-day annualized rate of return displayed on a certain currency fund that day is 2%, and assuming that the currency fund's income in the next year can maintain the same level as the previous seven days, then you can get 2% by holding it for one year.

overall income.

The daily 7-day annualized rate of return of money funds is uncertain. This is also a characteristic of money fund financial products. If there is a low return for a certain period of time, users can also consider choosing other financial products.

The higher the seven-day annualized rate of return, the better. The higher the seven-day annualized rate of return, the more income investors will get. The income is proportional to the risk. The higher the income, the greater the risk.

However, currently monetary funds and some net worth financial management calculations are based on seven-day annualized returns, and the overall risk is relatively small.

The seven-day annualized return refers to the data obtained by annualizing the average return of the underlying asset in the past seven days.

Seven-day annualized rate of return = principal * interest rate * 7/365.

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

Annualized rate of return is the annual rate of return converted from the net income of every 10,000 fund shares of a currency fund in the past seven days.

There are two methods of income carryover for money market funds: 1. "Daily dividends, carried forward on a monthly basis", which is equivalent to daily simple interest, and monthly compound interest; 2. "Daily dividends, carried forward on a daily basis", which is equivalent to

Compound interest every day.

The annual rate of return is the rate of actual return on an investment in one year.

The annualized rate of return is the income of an investment (commonly used in monetary funds) over a period of time (such as 7 days). Assuming that it remains at this level for a year, it is the converted annual rate of return.

Because the annualized rate of return changes, the annual rate of return is not necessarily the same as the annualized rate of return.

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

There are two methods of income carryover for money market funds. One is daily dividends, which are carried forward monthly, which is equivalent to daily simple interest and monthly compound interest; the other is daily dividends, which is carried forward daily and is equivalent to daily compound interest.

, where the simple interest calculation formula is: (∑Ri/7)×365/10000 copies×100%, and the compound interest calculation formula is: (∏(1+Ri/10000 copies)-1)^(365/7)×100%

, where Ri is the income per 10,000 shares on the most recent i-th calendar day (i=1,2?7), and the fund's seven-day annual return rate is rounded to three decimal places.

It can be seen that the 7-day annualized rate of return is calculated based on the 7-day income, and the 30-day annualized rate of return is calculated based on the income of the last month.

This indicator is mainly set up to provide investors with more intuitive data for reference when comparing the returns of monetary funds with other investment products.

In this indicator, the return rate in the past seven days is determined by seven variables. Therefore, the same return rate in the past seven days does not mean that the net income per 10,000 fund shares used to calculate the seven daily days is exactly the same.