The so-called seven-day annualized rate of return is the average income level of the money fund in the last seven days, which is obtained after annualization. If you want to use the seven-day annualized rate of return to calculate the one-day income, then interest = principal * seven-day annualized rate of return /365. Under different income carry-over methods, the calculation formula of seven-day annualized rate of return should also be different. At present, there are two ways to carry forward money market funds. First, "daily dividends are carried forward on a monthly basis", which is equivalent to daily simple interest and monthly compound interest. The other is "daily dividend, daily carry-over", which is equivalent to daily compound interest.

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One-day or seven-day annualized rate of return formula

The simple interest calculation formula is: (∑Ri/7)×365/ 10000 × 100%.

The compound interest formula is: (∑Ri/ 10000 copies) 365/7× 100%.

Where Ri is the nearest i-th Gregorian calendar day (I = 1, 2? .. 7), the seven-day annual rate of return of the fund is rounded to three decimal places.

Calculation formula of annualized interest for two or seven days

One-day income = principal * seven-day annual income rate /360

According to experts' analysis, the seven-day annualized rate of return is the sum of the net income per 10,000 products in the past seven days, and then annualized. As an average index, the seven-day annualized rate of return can only reflect the general fluctuation of the past seven days. The short-term seven-day annualized rate of return of a product is extremely high, which may mean that the investment manager's operating style is more radical, and the daily income of users is often a bit like riding a roller coaster. For ordinary users, stable high income is king.

The bigger the money fund, the greater the voice in investment, and the higher the income. Some money funds use "regular products" or "self-subsidies" to express high returns, but this high return is unsustainable.

Experts believe that consumers should pay more attention to the net income per 10,000 products or the total income per 10,000 products than the annualized income of seven days. The daily income of10,000 copies is the actual income of the day; On the other hand, the 7-day annualized rate of return is to convert the 1 10,000 income in the past 7 days into an annualized rate of return, rather than the real rate of return every day. Investors should pay more attention to the stability of long-term performance when looking at product income.

In addition, investors should make comprehensive comparison when choosing products, including specific income, specific stability, specific purchase threshold, specific cash flexibility, specific use scenarios and other conditions. The quality of a product is actually a comprehensive competition.

The so-called seven-day annual return refers to the method of calculating the annual return according to the average return of seven trading days.

For example, the annualized rate of return of a monetary fund on the same day is 6%, and assuming that the income of the monetary fund in the next year can remain unchanged at the level of the previous seven days, then the overall income of 6% can be obtained by holding it for one year.