Currently, the financial products on the market are mainly net value financial products. Investors no longer use expected rate of return as a reference indicator for investment. Instead, they need to understand reference indicators related to annualized rate of return and performance comparison benchmarks.

The annualized rate of return includes the seven-day annualized rate of return.

So what is the difference between the seven-day annualized return and the performance comparison benchmark? What is the difference between the seven-day annualized return and the performance comparison benchmark? The seven-day annualized return is the summation and average of the daily annualized return for seven consecutive days.

Obtained, the calculation formula is: seven-day annualized return = seven-day total return ÷7*365.

Performance comparison benchmarks refer to reference indicators calculated by financial product managers based on product investment scope, strategy and market.

There are obvious differences in the calculation nature between the two.

Specifically, the seven-day annualized rate of return is an indicator used to measure product income performance. It represents the historical performance of the product and does not represent future performance. Therefore, for investors, the seven-day annualized rate of return can only be

As a short-term reference indicator for selecting funds or financial products; the performance comparison benchmark is mainly to help investors form a rough assessment and judgment on the future income of net value financial products, and is also a reference basis for the performance remuneration accrual standards of managers.

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In addition to being used to measure the historical performance of financial products, the seven-day annualized rate of return is also applicable to funds and other products. The performance comparison benchmark is mainly for net worth financial products, and its scope of application is smaller than the seven-day annualized rate of return.

In short, whether it is the seven-day annualized rate or the performance comparison benchmark, both are important reference indicators for investors to select financial products. However, investors still need to improve their awareness of risk prevention. Neither of these two indicators can represent actual future returns.