1. 7-day annualized rate of return
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. The daily income of money funds will change constantly with the operation of fund managers and the fluctuation of money market interest rates. In fact, it is unlikely that the fund's income will remain unchanged for one year.
Income calculation formula: 7-day annualized rate of return = 7-day total rate of return (%)/ 7 x 365.
For example, a money fund has been earning 0.07% for the past seven days, so the average daily return for these seven days is 0.0 1% (that is, one ten thousandth), and the annualized return for seven days is 3.65%(0.07%/7x365).
As an intuitive income indicator, the seven-day annualized rate of return is an important indicator for investors to choose investment funds. Usually, financial products such as deposit interest rate, wealth management products and reverse repurchase are also priced at annualized rate of return. 、
Second, the annual interest rate
The annual interest rate refers to the deposit interest rate for one year. The so-called interest rate is the abbreviation of "interest rate", which refers to the ratio of interest amount to deposit principal or loan principal in a certain period of time. Usually divided into annual interest rate, monthly interest rate and daily interest rate. The annual interest rate is expressed as a percentage of the principal, the monthly interest rate as a percentage, and the daily interest rate as a percentage.
Income calculation formula: annual interest rate = one-year interest ÷ principal × 100%.
For example: deposit 100 yuan,
The bank promised to pay an annual interest rate of 4.2%
Then the bank will pay 4.2 yuan interest next year.
The calculation formula is 100×4.2% = 4.2 yuan.
So as long as it is converted according to the calculation formula, it can be understood as the conversion of seven-day annualization and annual interest rate.