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.

Annualized rate of return The annual rate of return converted from the net income per 10,000 fund shares of the Monetary Fund in the past seven days. There are two ways to carry forward money market funds: 1. "Daily dividends are carried forward on a monthly basis", which is equivalent to daily simple interest and monthly compound interest; 2. "Daily dividends are carried forward daily", which is equivalent to daily compound interest.

Extended data:

The annualized rate of return is similar to other related terms: return on investment.

Calculation formula:

Return on investment (ROI)= annual profit or average annual profit/total investment × 100%. As can be seen from the formula, enterprises can improve profit margins by reducing sales costs; Improve the efficiency of asset utilization to improve the return on investment. The advantage of return on investment (ROI) lies in its simple calculation. Return on investment (ROI) is usually time-sensitive-the return is usually based on a specific year.

Baidu Encyclopedia-Return on Investment

Baidu encyclopedia-annualized rate of return