Nowadays, many people will spend part of their spare money on investment and financial management, and the investment we are most concerned about is the rate of return. So, is the seven-day annualized rate of return higher or lower? Let's take a look with Bian Xiao!

7-day annualized rate of return: the higher the better or the lower the better?

The higher the 7-day annualized rate of return, the better, because the higher the 7-day annualized rate of return, the more income investors get. However, investors should pay attention to the fact that the higher the expected rate of return, the higher the risk. Investors should guard against risks when buying, and the annualized rate of return is generally the expected rate of return, which is the goal that wealth management products want to achieve. It can only be used as a reference value, subject to the actual income.

What is the rate of return?

Rate of return refers to the rate of return on investment, generally expressed as an annual percentage, and calculated according to the current market price, face value, coupon rate and the time from the maturity date. Seven-day annualized rate of return is the annual rate of return converted from the net income per 10,000 fund shares of the Monetary Fund in the past seven days.

The daily income of money funds will change constantly with the operation of fund managers and the fluctuation of money market interest rates. In fact, it is unlikely that the fund's income will remain unchanged for one year.