What do you mean by the expected rate of return in the first and seventh years of junior high school?
Seven-day annualized expected return refers to the average expected return level of the monetary fund for seven days, and the data obtained after annualization. For example, the annualized expected return of a monetary fund on the seventh day is 2.58%. If the expected return of the money fund in the next year can remain unchanged at the level of the previous seven days, then you can get an overall expected return of 2.58% if you hold it for one year.
But generally speaking, the expected daily income of the money fund will change and fluctuate with the operation of the fund manager and the fluctuation of the money market interest rate, so it is unlikely that the expected income of the fund will remain unchanged for one year in actual operation.
2.7 The annualized expected rate of return and the annual interest rate of the bank refer to the one-year deposit rate. The so-called interest rate is the abbreviation of "interest" or "interest rate", which refers to the ratio of interest amount to deposit principal or loan principal in a certain period of time. Usually divided into annual interest rate, monthly interest rate and daily interest rate. The annual interest rate is expressed as a percentage of the principal, the monthly interest rate as a percentage, and the daily interest rate as a percentage. And what does the seven-day annualized expected rate of return mean? Seven-day annualized expected rate of return refers to the expected rate of return calculated by the monetary fund according to the annualized average of the past seven days, and there are still obvious differences between the two.
The change of interest rate fluctuates up and down under the influence of economic development When the economic development is in the growth stage, the investment opportunities of banks increase, the demand in loanable funds increases and the interest rate rises; On the other hand, when the economic development is depressed and the society is in a depression period, the willingness of banks to invest decreases, the demand for loanable funds naturally decreases, and the market interest rate is generally low.
Generally speaking, the annualized interest rate of seven-day deposits in banks is much lower than the expected seven-day annualized rate of return of money funds, which is also an important reason why many investors prefer to buy money funds rather than deposit their money in banks.
Editor's Note: To sum up, what does the 7-day annualized expected rate of return mean? To put it simply, the average expected rate of return of the money fund spread to 7 days after annualization is still very different from the annual interest rate of bank deposits. If you want to know more about the fund, please go to the small financial column group.