the p>3-day annualized rate of return is generally used in money funds, which is the data obtained by annualized calculation of the income of wealth management products in the past month, and is an important reference data for investors to predict the income of wealth management products. Take a monetary fund's 3-day annualized rate of return of 2.3% on March 3, 22 as an example. If the fund maintains the income level of the past month in the next year, the fund's rate of return in the next year will be 2.3%.

annualized rate of return is calculated by converting 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 a real rate of return that has been achieved.

annualized rate of return The annual rate of return converted from the net income per 1, fund shares of the Monetary Fund in the past seven days. There are two ways to carry forward money market funds:

1. "Dividends are carried forward on a daily basis", which is equivalent to simple interest on a daily basis and compound interest on a monthly basis;

2. "Dividends paid daily are carried forward daily", which is equivalent to daily compound interest.

annualized rate of return refers to the rate of return obtained when the investment period is one year.

annualized rate of return = [(investment income/principal)/investment days ]*365×1%

annualized rate of return = principal× annualized rate of return

actual income = principal× investment days /365

annual rate of return, which is the ratio of the actual income of an investment in one year.

The annualized rate of return is the return of investment (commonly used by money funds) within a period of time (for example, 7 days). Assuming that this level is maintained for one year, the annual rate of return is converted. Because the annualized rate of return is variable, the annualized rate of return is not necessarily the same as the annualized rate of return.

quantitative formula

summary: if an investor invests the principal C in the market and its market value becomes V after time t, then in this investment:

1. The return is: P=V-C

2. The rate of return is: K = P/C = (V-C)/C = V/C-1. D represents the effective investment time of one year, which is D=36 days for bank deposits, bills and bonds, 25 days for stocks and futures, and D=365 days for real estate and industry.

4. in the case of continuous multi-period investment, y = (1+k) n-1 = (1+k) (d/t)-1

where: K=∏(Ki+1)-1, T=∑Ti

conclusion

. Let's look at a simple example first: one-time investment. Suppose an investor invests the principal C in a market (such as the stock market) at a certain moment, and its market value becomes V after a period of time T, then the investor's income (or loss, if V,