Seven-day annualized rate of return: refers to the average income level of the monetary fund in the last seven days, and the data obtained after annualization. Seven-day annualized rate of return is the annual rate of return converted from the net income per 10,000 fund shares of the Monetary Fund in the past seven days.
Ten thousand copies of income is the index of money fund income. To put it simply, if you buy 1 0,000 yuan, and the income of 1 10,000 shares on that day is 1.2, then your income on that day is 1.2 yuan.
Extended data:
The seven-day annualized rate of return is the average income level of the money fund in the last seven days, which is obtained after annualization. For example, the annualized rate of return of a monetary fund is 2% on the same day, and assuming that the income of the monetary fund in the next year can remain unchanged at the level of the previous seven days, then you can get 2% of the overall income if you hold it for one year.
Of course, the daily income of the money fund will constantly change with the operation of the fund manager and the fluctuation of the money market interest rate, so it is unlikely that the fund income will remain unchanged for one year in actual operation.
At present, the average annualized rate of return of domestic money funds is about 5%, while the benchmark interest rate of one-year time deposits is 1.50%. As a cash management tool with excellent liquidity and safety, money fund is still an ideal substitute for short-term savings.
The establishment of this index is mainly to provide investors with more intuitive data for investors to refer to when comparing the income of money funds with other investment products. In this indicator, the rate of return in the last seven days is determined by seven variables, so the same income in the last seven days does not mean that the net income per 10,000 fund shares in the seven times used for calculation is exactly the same.
Seven-day annualized rate of return is the annual rate of return converted from the net income per 10,000 fund shares of the Monetary Fund in the past seven days.
References:
Baidu Encyclopedia -7-day annualized rate of return