The 7-day annualized rate of return, as the name suggests, is the average income level of the fund company in the last 7 days, and then annualized to get the 7-day annualized rate of return.

If a fund's income shows a 7-day annualized rate of return of 6.78% on that day, and if this income is maintained until one year later, then you can get 6.78% for the whole year. However, the fund company's 7-day annualized rate of return is impossible.

Maintain a high degree of consistency, basically different every day, but you can know the general situation of recent income through the 7-day annualized rate of return.

Taking WeChat Financial Management as an example, the seven-day annualized rate of return of WeChat Financial Management on February 1, 2014 was 7.223%. If the deposited principal is 10,000, it means that your annual income is approximately 10,000*7.223%.

Since the annualized rate of return fluctuates, the daily and annual income will vary. The size of the difference depends on the fluctuation of the annualized rate of return.

The annual interest rate is easy to understand, that is, the interest will be paid after one year.

But this seven-day annualized rate of return is very interesting. Its meaning is very simple, that is, if the situation in the last seven days continues like this, how much profit can you make if you save for a year.

In other words, if you want to turn your seven-day annualized rate of return into an annual interest rate, you must have two conditions: first, during this year, the seven-day annualized rate of return can always be at this standard and remain unchanged; second,

, you have to save enough for me for one year, both are indispensable.

If calculated based on five-sixths, then the 5% annualized income from financial management will actually only be able to earn 4.1% after saving for one year.

These gaps are the result of you sacrificing the liquidity of your funds and taking on greater risks. This risk is so great that you may lose your principal (non-capital-guaranteed floating-income financial management).

This is also the reason why most people don’t buy financial management products.