This method does not need to consider the number and duration of fixed investment, but simply adds the invested capital as the principal and calculates the simple rate of return with the existing (market value-principal) as the income. So it is called the simplest and most intuitive method. Usually, the rate of return on fixed investment is calculated in this way.
Calculation method 2: Return on fixed investment = (net fund value-average cost)/average cost.
When buying and selling stocks and funds, the yield = (selling price-buying price)/buying price. This is the yield of one-time buying strategy. Fixed investment is bought in batches, so the "buying price" should be "average cost" and the "selling price" should be "net fund value at the time of selling".
Calculation method 3: refer to the annualized rate of return of fixed investment time factor.
In the fixed investment, taking profit is the ultimate importance, and the more reasonable taking profit is the annualized rate of return with reference to the time factor of fixed investment. . Generally speaking, the annualization of 10%- 15% is a reference index. You can enter the calculation formula of annualized rate of return in EXCEL table: = power (1+ fixed investment rate of return, 1/ fixed investment years)-1.
Note: Simple interest and compound interest are both interest-bearing methods. Simple interest means that interest does not generate interest, that is, the principal is fixed, and the interest is settled in one lump sum after maturity, and the interest generated by the principal is no longer calculated. Compound interest is actually compound interest, that is, the principal and interest of the previous period are used as the principal of the next period to calculate interest.
Rate of return refers to the rate of return on investment, generally expressed as an annual percentage, and calculated according to the current market price, face value, coupon rate and the time from the maturity date. For a company, the rate of return refers to the percentage of net profit to the average capital used. As the rate of return of personal (and family) and social (government public expenditure) investment, the rate of return research can be divided into personal rate of return and social rate of return, with the former being the main concern.
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