the 7-day annualized income is the average income level of the monetary fund in the last seven days, and then the data is annualized, while the 3-day annualized income is calculated according to the average income in the last 3 days. Calculation method: principal * interest rate /365*3 (or 7) If the annualized income for seven days is: 3%, and the deposit is 1, yuan:

The annualized income for seven days is: 1, * 3%/365 * 7, then the income for seven days is 5.75 yuan; Every day, there is .82 yuan of income, while holding it for 3 days is 24.65 yuan.

so generally speaking, the annualized income of seven days is lower than that of 3 days, and the annualized income is fixed, so the income allocated to seven days is naturally different from that of 3 days.

in addition, because the annualized rate of return on the 7th and 3th day is variable, we can only estimate the approximate annualized rate of return, which does not represent the actual annualized rate of return of this product. Take the above example: suppose the annualized income of seven days changes to 2.5% or 3.5%, then the corresponding annualized income will also change.

Extended information:

The assets of the Monetary Fund are mainly invested in short-term monetary instruments (generally within one year, with an average maturity of 12 days), such as treasury bonds, central bank bills, commercial bills, bank time deposit certificates, government short-term bonds, corporate bonds (with high credit rating), interbank deposits and other short-term securities.

In fact, the investment scope of these money market funds are all varieties with high safety factor and stable income. Therefore, for many enterprises and individuals who want to avoid the risks in the securities market, money market funds are a natural haven. Under normal circumstances, they can get higher income than bank deposit interest, but money funds do not guarantee the safety of principal. (But in fact, due to the nature of the fund, the monetary fund rarely loses its principal in reality. Generally speaking, money funds are regarded as cash equivalents. )

How to choose a money fund:

First, look at the size of the fund

The size of the money fund is not too big or too small. The fund size is too small, which is easily restricted by risk control and the expected income is unstable; But it's too big, like the trillion-dollar fund scale of Yu 'ebao, but its expected return performance has never been in the forefront of similar money funds. According to the data, the fund size of more than 2 billion and less than 1 billion is the most suitable, and the expected return is high and relatively stable.

among the 11 money funds of the upgraded Yu' ebao, there are many that meet this condition. You can choose according to their fund size on the product introduction page.

second, look at the ranking of long-term cumulative returns

to look at the earning power of money funds, it is not necessary to pay too much attention to the seven-day annualized expected rate of return and the ten thousand expected returns, but to pay attention to the ranking of long-term cumulative returns in one year, two years and three years among similar funds.

From this point of view, excluding Guotai Libao (the fund was established less than three years ago), three of the other 1 cargo bases have outstanding performances:

Huaan Ririxin Currency A ranks 318th, 213th and 165th among its peers in the past year, two years and three years, with an average annualized expected rate of return of 3.48%;

The cumulative returns of GDB's daily profit in the past one year, two years and three years rank 248th, 127th and 148th among its peers, with an average annualized expected rate of return of 3.51%.

The cumulative returns of Qian Bao Currency A in Central Europe in the past one year, two years and three years rank 245th, 117th and 6th among its kind, with an average annualized expected rate of return of 3.96%.

summary: among the 11 Yu' ebao money funds, the two best ones in terms of fund size and long-term cumulative return are Central Europe Qian Bao Currency A and Huaan Ririxin Currency A..