You will know which is the performance benchmark or annualized rate of return-stock city financial management.

Nowadays, many people regard investment and wealth management products as investment and wealth management methods, and generally pay attention to two aspects when choosing wealth management products. One is the performance comparison benchmark of wealth management products, and the other is the annualized rate of return of wealth management products. However, many people don't know how to choose. Well, let's have a look. Which is better, performance benchmark or annualized rate of return?

Performance return rate

Now when we choose financial products, there are various evaluation criteria, such as different dimensions and different indicators. Look at the profitability or performance benchmark of wealth management products. Generally speaking, choosing wealth management products is basically comparing these two points. But many times investors don't know how to compare.

Comparison between performance benchmark and annualized rate of return

1. Performance benchmark: applicable to net worth wealth management products. It is the estimated profit that investors are likely to get according to the past performance of products or the historical sales performance of similar products, and it is a key index value to consider the relative return of fund performance.

2. annualized rate of return: for example, we usually have an annualized rate of return of nearly 7 days, an annualized rate of return of nearly 1 month, and an annualized rate of return of nearly 1 year. This is actually an annualized rate of return, but we should not be confused by the previous period.

Simply put, the annualized rate of return in the past seven days is the annualized rate of return estimated according to the seven-day income. The annualized rate of return in the past year is estimated by the income of one year, but they are all annualized rates of return. Only the seven-day annualized rate of return is a relatively intuitive short-term index value, reflecting the recent main performance of the commodity.

Long-term holding, pay attention to the performance benchmark and annualized rate of return in the past year. For short-term holding, such as 1-3 months, we must consider the short-term income performance of the product and pay attention to the short-term annualized rate of return. But in fact, the basic rate of return will fluctuate around the performance benchmark, and the deviation will not be too great.

Is the benchmark of performance comparison the annual interest rate?

1, calculation method:

Performance benchmark is based on the past performance of goods or similar goods to evaluate the closed-end rate of return, and then converted into annualized expected rate of return.

Therefore, from the calculation method, the performance comparison benchmark (annualized) can be understood as the reference annualized expected rate of return, which is similar to the expected annualized expected rate of return.

2. Actual effect:

Performance benchmark is suitable for net worth wealth management products, and a key feature of net worth wealth management products is to predict the expected rate of return without service commitment. Therefore, the performance comparison benchmark is only a reference data information of the expected rate of return of goods, and it cannot be used as the expected rate of return of annualized rate of return immediately.

After the maturity of net worth wealth management products, the actual expected income may be higher than the performance benchmark or performance benchmark, and the error between them may be large.

Tips: The expected expected rate of return calculated based on the performance comparison benchmark is only for reference, and does not represent the specific expected rate of return of commodities. However, without considering the credit risk, the performance benchmark can also be used to predict the expected rate of return.