The annualized rate of return is the rate of return that investors can get for a period of one year. Measuring long-term investment is a very important index formula: annualized rate of return = (investment income/principal)/investment days *365* 100%.

The annualized rate of return is a very important index to evaluate the historical return of funds.

Index funds are fund products with specific indexes (such as Shanghai and Shenzhen 300 Index, S&P 500 Index, Nasdaq 100 Index, Nikkei 225 Index, etc.). ) as the target index, and take the constituent stocks of the index as the investment object, build a portfolio by buying all or part of the constituent stocks of the index, and track the performance of the target index.

According to the analysis of historical data, in the long run, the annualized rate of return of index funds is generally maintained at around 10%.