The calculation method of annualized rate of return is to convert the current rate of return (daily rate of return, weekly rate of return, monthly rate of return) into annual rate of return, which is a theoretical rate of return, not an actual rate of return. For example, the daily rate of return is one in ten thousand, and the annualized rate of return is 3.65% (an average of 365 days a year).
The annualized rate of return of the fund = (return on investment/principal)/(investment days /365)× 100%.
Fund annualized income = principal × annualized rate of return
The actual income of the fund = principal × annualized rate of return × investment days /365, which is the ratio of the actual income of an investment in one year.
Extended data:
Fund investment skills:
First: Look at the market outlook before operating.
The income from fund investment comes from the future. For example, if you want to redeem stock funds, you can first look at whether the future development of the stock market is a bull market or a bear market. Then decide whether to redeem or not, and make a choice on the timing. If it is a bull market, it can be held for a period of time to maximize the benefits. If it is a bear market, redeem it in advance and put it in the bag.
Second: switch to other products.
Converting high-risk fund products into low-risk fund products is also a kind of redemption, such as converting stock funds into money funds. This can reduce the cost, the conversion fee is generally lower than the redemption fee, while the money fund has low risk, equivalent to cash, and the income is higher than the current interest. Therefore, conversion is also an idea of redemption.
Third: regular fixed redemption
Like regular investment, regular fixed redemption can do daily cash management and stabilize market fluctuations. Fixed-term redemption is a redemption method of fixed-term investment.
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