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How to convert net worth into annualized rate of return
The general calculation formula is: (current net value-initial net value) ÷ initial net value ÷ product running days x 365 = annualized rate of return;

Net value, also known as depreciation value, refers to the original value or replacement value of fixed assets after deducting accumulated depreciation. Depreciation value reflects the existing value of fixed assets after wear and tear, as well as the actual amount of funds occupied; Compared with the original value of fixed assets, it shows the old and new degree of existing fixed assets and the general situation of its effectiveness in dealing with the people. Calculated through the company's financial statements, it is the accounting reflection of shareholders' equity, or the value of the company's own funds corresponding to the stock this year.

Among many tools for basic analysis of stock investment, book value is one of the most common reference indicators, just like P/E ratio, P/B ratio and P/B ratio.

The calculation method of annualized rate of return is to convert 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 an actual 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 annualized rate of return refers to the rate of return obtained by investing for one year.

Annualized rate of return = [(return on investment/principal)/investment days] *365 × 100%

Annualized income = principal × annualized rate of return

Actual income = principal × annualized rate of return × investment days /365

For example, a wealth management product sold by a bank claims that the annualized rate of return of 9 1 day is 3. 1%, so if you buy 1 10,000 yuan, the interest you can actually receive is 1% * 9 1/365 = 772.80. In addition, it should be noted that the general bank's wealth management products do not bear interest on the same day as bank time deposits, and return the principal and interest at maturity. Wealth management products have subscription period, liquidation period and so on. During this period, no interest is calculated on the principal or only current interest is calculated. For example, if the subscription period of a wealth management product is 5 days, and the period between the maturity date and the principal repayment settlement period is 5 days, then your actual capital occupation is 10 days. The actual annualized rate of return of funds is only 772.88 * 365/(1kloc-0/* 65438+ten thousand) =2.79%. Assuming that the actual annualized rate of return of funds is y, the equation 65438+ million * (9 1+ 10) can be listed. The absolute income is 772.88/65438+ million =0.7728%.