When investing in financial management, the expected annualized expected rate of return and the seven-day annualized expected rate of return are very important product information, and investors will estimate the expected return of future investment according to the expected rate of return. So what is the difference between the expected annualized expected rate of return and the seven-day annualized expected rate of return?

1, annualized expected return

The calculation method of annualized expected rate of return is to convert the current expected rate of return into the annual expected rate of return. For example, if the current monthly expected rate of return of a product is 0.3%, then the converted annualized expected rate of return =0.3%/ 12=2.5%.

Many banks' fixed-income wealth management products will use the concept of expected annualized expected rate of return, and investors can weigh the risk of the product and the expected expected return that can be obtained according to the expected annualized expected rate of return. However, the expected annualized expected rate of return after the product expires is different from the actual expected rate of return, so investors need to distinguish it rationally.

2. The difference between the expected annualized expected rate of return and the seven-day annualized expected rate of return.

Seven-day annualized expected rate of return is widely used in money funds, which refers to the average expected rate of return of money funds in the past seven days. Investors are easily misled by the word "seven days". The seven-day annualized expected rate of return does not refer to the seven-day expected rate of return of the product, but still refers to the one-year expected rate of return. Just taking the seven-day data as a reference indicator, it does not represent the actual annualized expected rate of return of the product.

The biggest difference between the expected annualized expected rate of return and the seven-day annualized expected rate of return is that the former calculates the annualized expected rate of return based on 365 days a year, while the latter calculates the annualized expected rate of return based on the net value of the Monetary Fund for nearly 7 days. Assuming that the expected rate of return of a product remains unchanged, the calculated expected annualized rate of return and the seven-day annualized rate of return should be the same.

The above content about the difference between the expected annualized expected rate of return and the seven-day annualized expected rate of return, I hope it will help you. Warm reminder, financial management is risky and investment needs to be cautious.