The benchmark of fund performance is an important index to measure the relative return of fund performance, and it is the expected goal set by the fund for itself. Expected annualized rate of return is the expected rate of return converted into one year when the wealth management product is established. Because the term of the product may be longer than one year or shorter than one year, it is more convenient to convert it into one year's rate of return. The two cannot be compared, but the expected annualized rate of return is generally slightly higher than the benchmark.

The difference between performance comparison benchmark and annualized rate of return;

Different in nature: performance comparison benchmark measures product performance; The annualized rate of return measures the product income, and the annualized rate of return is equivalent to the expected rate of return for one year.

Different returns: in the actual operation of funds, the performance benchmark is usually set as the minimum target, and the probability of products with small risk coefficient reaching or even exceeding the expected rate of return will be higher.

Different targets: performance comparison benchmark is more suitable for net worth wealth management products; The expected annualized rate of return is only calculated by converting the current rate of return into the annual rate of return.

At present, many wealth management products no longer take annualized rate of return as an important reference index, and performance comparison benchmark has replaced annualized rate of return as a reference index for most wealth management products. Investors can judge the expectation of wealth management products by understanding the performance comparison benchmark.

First, the performance benchmark generally refers to the fund performance benchmark. Simply put, the benchmark of fund performance can be regarded as the "passing line" of the fund's long-term performance and the minimum goal that the fund should pursue in its management and operation. The benchmark of fund performance is an important index to measure the relative return of fund performance, and it is the expected goal set by the fund for itself. The benchmark of fund performance is that investors' information must be announced when the fund is issued, and investors can know its specific contents in any documents related to the fund.

Second, if the income of a certain fund is higher than its performance benchmark, it means that the fund is "qualified". On the contrary, it is an unqualified fund. The performance comparison benchmarks of stock funds are: first, the proportion of index, and second, the reference standard.

The index ratio is responsible for measuring the risk-return level of the fund, and the main investment scope and investment style of the fund are stipulated by the reference standard.

Third, the annualized rate of return is only calculated by converting the current rate of return (daily rate of return, weekly rate of return, monthly rate of return) into annual rate of return, which is a theoretical rate of return, not a real rate of return achieved. In many wealth management products, it will involve the calculation of annualized rate of return.

Actual income = principal × annualized rate of return × investment days /365