Many friends may calculate the bank deposit interest according to the interest rate given by the bank, but they may not know how to calculate the seven-day annualized expected rate of return. Today, Bian Xiao teaches you how to calculate the 7-day expected annualized rate of return through an example.

First of all, make clear what is the seven-day annualized expected rate of return.

Seven-day annualized expected return refers to the average expected return level of the monetary fund for seven days, and the data obtained after annualization. For example, a money fund shows a 7-day annualized expected return of 2.55%. If the expected return of the money fund in the next year can remain unchanged at the level of the previous seven days, then you can get the overall expected return of 2.55% if you hold it for one year.

Under normal circumstances, the expected daily income of the money fund will change with the operation of the fund manager and the fluctuation of the interest rate in the money market, so it is unlikely that the expected income of the fund will remain unchanged for one year.

Second, according to the calculation formula, how to calculate the seven-day annualized expected rate of return? In fact, by definition, there is evidence to follow. There are two ways to carry forward the expected income of money market funds: one is "daily dividend, carried forward monthly", which is equivalent to daily simple interest and monthly compound interest. The second is "daily dividend, carried forward by the day", which is equivalent to daily compound interest. If the value of a monetary fund before the first day of trading is A, the value after the seventh day of trading is B, and the expenses for these seven days are C, then the calculation formula of the seven-day annualized expected rate of return is (B-A-C)/A/7*365* 100%. The above statement is official and may not be easy to understand. Nothing, you will understand by giving an example in the following small series.

Take the Monetary Fund as an example. If the value of each share of a money fund is 1 yuan before the market opens on July 1 day, and it is 1. 1 yuan after the market closes on July 7, and the cost of buying and redeeming these seven days is zero, the seven-day annualized expected rate of return of the money fund is equal to:

( 1. 1- 1-0)/ 100/7*365* 100%=5.2%。