Seven-day annualized rate of return refers to seven-day annualized rate of return. Seven-day annualized rate of return refers to the average monetary income level reflected by the monetary fund in the last week, and then annualized. The formula of seven-day annualized rate of return is: seven-day income = rate of return /365 days ×7× principal. Seven-day annualized rate of return can only be used as a short-term income index and actual rate of return when investors invest in money funds. The 7-day annualized interest rate of the money fund is different every day, and of course the return is different.

the function and precautions of the seven-day annualized rate

The establishment of this indicator can make investors understand the income of the money fund more intuitively. As time goes on, income may rise or fall, and income will fluctuate. Therefore, in actual investment, the fund income is unlikely to remain unchanged. Therefore, investors should not pay too much attention to the seven-day annualized rate when purchasing wealth management products. This value can only be used as a reference. In fact, if the seven-day annualized rate of return of the product is super high, it means that the manager who manages the fund has a more radical investment style and the income may be like a roller coaster. For most financial users, income stability is the most important.