On the basis of understanding the annualized rate, we should also pay attention to distinguish different types of investment products. For example, the annualized rate of return of stocks, bonds and other markets is relatively stable, but market fluctuations will increase risks; Non-standardized investment markets such as P2P online loans and private equity funds are risky, but usually have higher annualized returns. Investors need to choose their own investment products according to their own situation and risk tolerance.
It should be noted that the annualized rate of return is not absolute, and the actual income will be affected by many factors. For example, the actual market environment and economic situation may be different from expectations, resulting in a decline in investment income. In addition, different investment products have different calculation methods. Therefore, when investors choose investment products, they need to know the past performance, risk control ability, compliance degree and other aspects of the products, so as to make a more comprehensive evaluation.