The so-called seven-day annualized rate of return refers to the average income level of money funds in the past seven days, which is the data obtained after annualizing it.

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.

Of course, the daily returns of money funds will continue to change with the operations of fund managers and fluctuations in money market interest rates. Therefore, in practice, it is unlikely that fund returns will remain unchanged for a year.

Therefore, the seven-day annualized rate of return can only be used as a short-term indicator. It can roughly refer to the recent profit level, but it cannot fully represent the actual annual income of this fund.

At present, the average annualized rate of return of domestic money funds is around 5%, and the interest rate of one-year time deposits is roughly the same. As a cash management tool with very good liquidity and safety, money funds are still an ideal short-term investment tool.

Savings Alternatives.

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 for the seven daily calculations are also exactly the same.

The seven-day annualized rate of return is the annual rate of return converted from the net income of every 10,000 fund shares of the money fund in the past seven days.